HCL Tech for the quarter ended Sep 2021 registered a consolidated sales of Rs 20655 crore, a growth of just 2.9% QoQ and 11.1% yoy basis. On USD terms the revenue for the quarter was up by 2.6%QoQ basis and 11.3% YoY basis. Eventually the net profit (after MI) was Rs 3259 crore, a growth of 1.7% QoQ basis and +3.7%YoY basis.

Consolidated quarterly performance QoQ comparison  

Net sales (including other operating income) of HCL Technologies has increased 2.93% to Rs 20655 crore.  

Operating profit margin has declined from 25.22% to 24.31%, leading to 0.79% decline in operating profit to Rs 5,022.00 crore.  Purchase of finished goods cost fell from 1.61% to 1.32%.   Employee cost increased from 53.29% to 53.38%.   Other expenses rose from 19.90% to 20.96%.   Contract job process charges rose from 14.36% to 14.93%.   

Other income fell 5.88% to Rs 240 crore.  PBIDT fell 0.94% to Rs 5179 crore.  Provision for interest fell 6.74% to Rs 83 crore.  Loan funds remained nil.  

PBDT fell 0.94% to Rs 5179 crore.  Provision for depreciation fell 4.43% to Rs 1078 crore.  

Profit before tax grew 0.02% to Rs 4,101.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 838 crore, compared to Rs 887 crore.  Effective tax rate was 20.43% compared to 21.63%.

Minority interest decreased 50% to Rs 4.00 crore.  Net profit attributable to owners of the company increased 1.68% to Rs 3,259.00 crore.  

Promoters' stake was 60.33% as of 30 September 2021 ,compared to 60.33% as of 30 June 2021 .  

Consolidated quarterly performance YoY comparison  

Net sales (including other operating income) of HCL Technologies has increased 11.08% to Rs 20655 crore.  Sales of Engineering and R&D Services segment has gone up 12.53% to Rs 3,242.00 crore (accounting for 15.69% of total sales).  Sales of Products & Platforms segment has gone down 5.41% to Rs 2,413.00 crore (accounting for 11.68% of total sales).  Sales of IT & Business Services segment has gone up 14.00% to Rs 15,005.00 crore (accounting for 72.63% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 2.11% to Rs 3,944.00 crore.  PBIT of Engineering and R&D Services segment fell 8.69% to Rs 620.00 crore (accounting for 15.72% of total PBIT).  PBIT of Products & Platforms segment fell 36.33% to Rs 475.00 crore (accounting for 12.04% of total PBIT).  PBIT of IT & Business Services segment rose 9.41% to Rs 2,849.00 crore (accounting for 72.24% of total PBIT).  

PBIT margin of Engineering and R&D Services segment fell from 23.57% to 19.12%.  PBIT margin of Products & Platforms segment fell from 29.24% to 19.69%.  PBIT margin of IT & Business Services segment fell from 19.78% to 18.99%.  Overall PBIT margin fell from 21.67% to 19.09%.  

Operating profit margin has declined from 27.53% to 24.31%, leading to 1.88% decline in operating profit to Rs 5,022.00 crore.  Purchase of finished goods cost fell from 2.42% to 1.32%.   Employee cost increased from 50.86% to 53.38%.   Other expenses rose from 19.16% to 20.96%.   Contract job process charges rose from 13.32% to 14.93%.   

Other income rose 20.60% to Rs 240 crore.  PBIDT fell 1.03% to Rs 5262 crore.  Provision for interest rose 3.75% to Rs 83 crore.  Loan funds rose to Rs 6,265.00 crore as of 30 September 2021 from Rs 5,466.00 crore as of 30 September 2020.  Inventories declined from Rs 106.00 crore as of 30 September 2020 to Rs 102.00 crore as of 30 September 2021.  Sundry debtors were higher at Rs 14,676.00 crore as of 30 September 2021 compared to Rs 12,500.00 crore as of 30 September 2020.  Cash and bank balance rose to Rs 8,471.00 crore as of 30 September 2021 from Rs 5,328.00 crore as of 30 September 2020.  Investments rose to Rs 7,032.00 crore as of 30 September 2021 from Rs 5,693.00 crore as of 30 September 2020 .  

PBDT fell 1.11% to Rs 5179 crore.  Provision for depreciation fell 1.28% to Rs 1078 crore.  Fixed assets declined from Rs 21,067.00 crore as of 30 September 2020 to Rs 18,826.00 crore as of 30 September 2021.  Intangible assets increased from Rs 16,075.00 crore to Rs 17,244.00 crore.  

Profit before tax down 1.06% to Rs 4,101.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 838 crore, compared to Rs 999 crore.  Effective tax rate was 20.43% compared to 24.10%.

Minority interest increased 33.33% to Rs 4.00 crore.  Net profit attributable to owners of the company increased 3.69% to Rs 3,259.00 crore.  

Equity capital stood at Rs 543.00 crore as of 30 September 2021 to Rs 543.00 crore as of 30 September 2020.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 60.33% as of 30 September 2021 ,compared to 60.33% as of 30 September 2020 .   

Consolidated year-to-date performance.

Net sales (including other operating income) of HCL Technologies has increased 11.77% to Rs 40723 crore.  Sales of Engineering and R&D Services segment has gone up 10.78% to Rs 6,318.00 crore (accounting for 15.51% of total sales).  Sales of Products & Platforms segment has gone down 0.20% to Rs 5,040.00 crore (accounting for 12.37% of total sales).  Sales of IT & Business Services segment has gone up 14.38% to Rs 29,375.00 crore (accounting for 72.12% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 2.03% to Rs 7,878.00 crore.  PBIT of Engineering and R&D Services segment fell 0.16% to Rs 1,238.00 crore (accounting for 15.71% of total PBIT).  PBIT of Products & Platforms segment fell 26.63% to Rs 1,105.00 crore (accounting for 14.03% of total PBIT).  PBIT of IT & Business Services segment rose 11.26% to Rs 5,535.00 crore (accounting for 70.26% of total PBIT).  

PBIT margin of Engineering and R&D Services segment fell from 21.74% to 19.59%.  PBIT margin of Products & Platforms segment fell from 29.82% to 21.92%.  PBIT margin of IT & Business Services segment fell from 19.37% to 18.84%.  Overall PBIT margin fell from 21.19% to 19.34%.  

Operating profit margin has declined from 27.10% to 24.76%, leading to 2.12% rise in operating profit to Rs 10,084.00 crore.  Purchase of finished goods cost fell from 2.22% to 1.47%.   Employee cost increased from 50.85% to 53.34%.   Other expenses rose from 19.84% to 20.44%.   Contract job process charges rose from 13.44% to 14.65%.   

Other income rose 0.20% to Rs 495 crore.  PBIDT rose 2.03% to Rs 10579 crore.  Provision for interest fell 16.10% to Rs 172 crore.  Loan funds rose to Rs 6,265.00 crore as of 30 September 2021 from Rs 5,466.00 crore as of 30 September 2020.  Inventories declined from Rs 106.00 crore as of 30 September 2020 to Rs 102.00 crore as of 30 September 2021.  Sundry debtors were higher at Rs 14,676.00 crore as of 30 September 2021 compared to Rs 12,500.00 crore as of 30 September 2020.  Cash and bank balance rose to Rs 8,471.00 crore as of 30 September 2021 from Rs 5,328.00 crore as of 30 September 2020.  Investments rose to Rs 7,032.00 crore as of 30 September 2021 from Rs 5,693.00 crore as of 30 September 2020 .  

PBDT rose 2.39% to Rs 10407 crore.  Provision for depreciation rose 2.27% to Rs 2206 crore.  Fixed assets declined from Rs 21,067.00 crore as of 30 September 2020 to Rs 18,826.00 crore as of 30 September 2021.  Intangible assets increased from Rs 16,075.00 crore to Rs 17,244.00 crore.  

Profit before tax grew 2.42% to Rs 8,201.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 1725 crore, compared to Rs 1926 crore.  Effective tax rate was 21.03% compared to 24.05%.

Minority interest increased 71.43% to Rs 12.00 crore.  Net profit attributable to owners of the company increased 6.42% to Rs 6,464.00 crore.  

Equity capital stood at Rs 543.00 crore as of 30 September 2021 to Rs 543.00 crore as of 30 September 2020.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 60.33% as of 30 September 2021 ,compared to 60.33% as of 30 September 2020 .  

Cash flow from operating activities decreased to Rs 6,877.00 crore for YTD ended September 2021 from Rs 11,143.00 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 803.00 crore, compared to Rs 952.00 crore during the YTD ended September 2020.   

Others:

Dividend: The company has declared a dividend of Rs 10 per share .

Management Commentary:

Commenting on the performance Roshni Nadar Malhotra, Chairperson said As we look forward with hope and optimism, what stands out is the human capacity to overcome unforeseen challenges, born of sheer determination. The pandemic accelerated the need for building together a sustainable and scalable future and investing in purpose-driven growth. The lessons learned have sharpened our ability to adapt and to innovate and deepened our commitment to bringing positive change through technology. We believe in 'The New Essential' - the confluence of technology and human ingenuity - as the path forward. In the months ahead, we will further accelerate our actions and investments in emerging technologies, people and ESG to build a stronger and better future together.

C Vijayakumar, Chief Executive Officer & Managing Director said We have delivered a healthy performance this quarter marked by strong growth across our services portfolio led by our Digital Business, Engineering and Cloud Services. We had impressive client additions across all categories, reflecting strong demand and relevance of our offerings across all our client groups. We signed 14 large new deals which helped us to record net new booking of $2.3 B, a growth of 38% YoY. Our net employee addition hit an all time high of 11,135 this quarter. Our robust pipeline and continued strong employee ramp up augurs well for our business momentum going forward.

Prateek Aggarwal, Chief Financial Officer said Services Revenue (ITBS & ERS) grew strongly at 5.2% QoQ in constant currency, with stable EBIT. P&P growth was impacted due to delays in closure of certain deals. Client mining has been healthy across all categories, notably, the number of USD 50 Mn clients now stand at 41 (Up 12 YoY). Strong Cash generation and conversion continued this quarter. Gross Cash stands at robust USD 2,696 Mn with OCF/NI and FCF/NI conversion at 117% and 103% respectively on Last-Twelve-Month basis. The Board approved a Payout policy that entails investor payouts of not less than 75% of Net Income cumulatively over 5 years FY 22 to FY 26.,

HCL Technologies: Consolidated Financial Results

Powered by Capital Market - Live News