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The Hindu
14-07-2025
- Business
- The Hindu
HCLTech's Q1 net profit declines 9.7%
HCL Tech, a Shiv Nadar-promoted IT firm, on Monday reported a 9.7% decline in its net profit at ₹3,843 crore during the first quarter of FY26 as against ₹4,257 crore in the year-earlier period. The quarter saw HCL's revenue grow to ₹30,349 crore, up 0.3% QoQ and up 8.2% YoY. The company also revised revenue growth guidance downwards between 3% and 5% YoY in constant currency and reset EBIT margin in the 17-18% range, from 18-19% earlier, after its Q1 operating margins declined due to lower utilisation and higher investments in generative AI and go-to-market initiatives. HCL's consolidated revenue on LTM basis crossed $14 bn; services CC revenue came down 0.1% QoQ and grew 4.5% YoY; digital revenue grew 15.2% YoY, accounting for 41.6% of services. In Q1, the company saw total deal wins worth $1.8 billion. V. Vijayakumar, CEO & Managing Director, HCLTech said, 'Our operating margin came at 16.3%, impacted by lower utilisation and additional Gen AI and GTM investments.' He further said, the company had a healthy revenue growth of 3.7% YoY, supported by good performance in our Services business with 4.5% YoY growth in constant currency. 'Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. The pipeline continued to grow as the demand environment was stable during the quarter. Overall, the demand environment has not deteriorated,' Mr. Vijayakumar said, addressing a media conference. He also observed that AI markets globally were witnessing different trends in consumption, with clients becoming more proactive with a mindset that was more towards adoption. The Noida-based company said its ongoing margin restructuring programme, to take EBIT margins to the 18-19% range, would impact earnings this year. According to the company, the restructuring would comprise various measures, including optimising underutilised facilities and need-based hiring. Roshni Nadar Malhotra, chairperson, HCLTech, said AI has become integral to the business growth of global enterprises. 'We also remain intensely focused on the ethical deployment of AI and maximising its positive social impact,' she added.
The Hindu
22-04-2025
- Business
- The Hindu
HCL net up 8% to ₹4,307 crore
HCL Tech, Shiv Nadar-promoted IT firm, has on Tuesday posted net profit of ₹4,307 crore during fourth quarter of FY25, an 8.1% rise over ₹3,986 crore in the corresponding period a year ago. The company's Q4 revenue grew 6.1% year-on-year to ₹30,246 crore while for the full year, its revenue stood ₹117,055 crores, up 6.5% YoY. HCL reported new deal wins of $2,995 million in the March 31 ended quarter while its total contract value for the full year was $9,268 million. Addressing a media conference, HCL Tech CEO C Vijayakumar said his firm has not seen any material impact from U.S. tariffs yet, but cautioned that such measures could affect all industries, especially consumer and manufacturing sectors. GenAI-led efficiency has become central to client strategy, even as discretionary tech spending still remained under pressure, he said in his commentary adding, 'AI is a significant opportunity, and we're seeing a strong pipeline of GenAI deals despite broader market uncertainties.'' He further said, the company remained confident that opportunities would emerge despite the current global uncertainties and market pressures. 'We are well positioned for the next phase of growth,' he asserted. According to him, HCLTech's telecom business is witnessing quite a growth momentum and the company currently has access to 30 large telcomes globally. 'Considering the overall performance, HCLTech achieved moderate growth but effectively managed its fiscal situation amidst macroeconomic uncertainties,'' said Biswajit Maity, senior principal analyst at Gartner. HCLTech held a healthy deal pipeline and continued to invest in AI and digital transformation, which were expected to fuel future growth, the analyst added. The board has declared an interim dividend of ₹18 per share for the financial year 2025-26. HCL to hire 2,000 to 3,000 freshers every quarter in FY26 HCLTech said it hired a total of 7,829 people in FY25 with a net addition of 3,377 in the whole year and 2,665 people during Q4. Responding to a query on hiring outlook, Ramachandran Sundararajan, Chief People officer, HCLTech said, 'Our hiring for FY26 is expected to be significantly higher than what we did in FY25. We will hire between 2000 to 3000 freshers in every quarter. However, we will market our hiring plan on quarter on quarter basis in the current climate.'' The tech firm said it saw its attrition stabilising in the last five quarters in the 12.5% to 13% range.
