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HCL Tech, one of India's leading IT services providers, has published its Q2FY23 results wherein it reported a 7.1% YoY growth in profits.
The company's revenues for the quarter that ended in September 2022 came in at Rs 24,686 crores, up 5.2% QoQ and 19.52% YoY. The contribution of American business to HCL Tech's revenues grew once again as 64.8% of the company's revenues stem from the Americas. European business accounted for 27.5% while the balance was from RoW.
Revenues from all segments recorded robust growth as its Telecommunications, media, publishing, and entertainment segment recorded the highest growth: 27.1% YoY growth. On the other hand, the contribution of Financial Services to total revenues grew to 19.2% while the others declined.
Also check out Wipro's q2 results and how it tanked the stock by 5%.
EBITDA for the quarter came in at Rs 5,425 crores. The EBITDA margin was 22% for the quarter, up sequentially but declining annually. Its net income or profit for the quarter stood at Rs 3,489 crores, up 7.1% YoY. The company added 8,359 new employees during the quarter as the attrition rate stalled at 23.8%.
“The highlight of the quarter’s performance is growth of 19.5% YoY, with Revenue at ₹ 24,686 Crore. EBIT has increased 12.3% and PAT has increased 7.1% YoY. We have significantly improved EBIT margins sequentially, led by operating leverage and efficiencies, despite the impact of salary increments for the largest section of our people. Our H1 growth & Deal Wins lead us to increase our Revenue guidance to 16%-17% for Services and 13.5%-14.5% at Company level, reflective of our strong growth visibility. Our EBIT guidance is now in a narrower range of 18%-19%. Our Cash Flow generation continues to be robust with OCF at US$ 2,049 Mn, being 114% of Net Income.” said Prateek Aggarwal, Chief Financial Officer at HCLTech.
The stock currently trades around Rs 1,017.25 per share, up 3.6%.
Article by Aman Agarwal.
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