InvestorQ : Can you give me an update on the quarterly results of HCL Tech for Q2FY23?
manisha Kolvenkar made post

Can you give me an update on the quarterly results of HCL Tech for Q2FY23?

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Crowny Pinto answered.
1 month ago
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For the Q2FY23 quarter ended September 2022, HCL Tech reported 19.52% higher sales revenues at Rs24,686cr. HCL Tech reported constant currency revenue growth of 3.8% and 19% on QOQ and YOY basis, impressive in a tough quarter. HCL Tech won 11 large deals with in the quarter with total contract value (TCV) of new bookings at $2.38 billion. That is nearly 16% sequentially higher. Revenues of HCL Tech have grown at CAGR of 10.2% in last 4 years. IT Services which accounts for 73.6% of revenues of HCL Tech, grew 18.2% while the Engineering & R&D services worth 17% revenues, grew 22.3%. Here is a quick summary.

HCL Tech

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 24,686

₹ 20,655

19.52%

₹ 23,464

5.21%

Operating Profit (Rs cr)

₹ 4,427

₹ 3,944

12.25%

₹ 3,992

10.90%

Net Profit (Rs cr)

₹ 3,489

₹ 3,259

7.06%

₹ 3,283

6.27%

Diluted EPS (Rs)

₹ 12.88

₹ 12.01

₹ 12.12

OPM

17.93%

19.09%

17.01%

Net Margins

14.13%

15.78%

13.99%

Let us now turn to the profit performance of HCL Technologies. PAT for Q2FY23 was up 7.06% at Rs3,489cr on enhanced operating performance. EBIT margins were up 93 bps sequentially at 18%, while net margins were up 13 bps at 14.1% in Q2FY23. HCL Tech has given services revenue guidance for FY23 at the range of 16-17% while the overall revenue guidance has been hiked to 13.5-14.5% for FY23, which his 100 bps higher than the original guidance. EBIT margin guidance stands at 18-19%, roughly at par with current levels. Among verticals, Engineering & R&D services had the best OPM of 21.4% and IT services had OPM of 16.7% in Q2FY23. Board has approved interim dividend of Rs10 per share.

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