What is quick take on the Mar-22 quarter results of HCL Technologies?
Answer
Answer
For the Mar-22 quarter, HCL Technologies reported 15.05% higher sales revenues at Rs.22,597 crore on consolidated basis, but flat on sequential basis. Dollar revenues were up 1.1% sequentially and 13.3% yoy in constant currency. For FY23, the constant currency revenue growth guidance is pegged at 12-14%. Products and platforms had the best EBIT margins at above 24% followed by ERS at 19% and ITES at below 17%.
HCL Technologies
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income (Rs cr)
₹ 22,597.00
₹ 19,641.00
15.05%
₹ 22,331.00
1.19%
EBITDA (Rs cr)
₹ 4,069.00
₹ 3,281.00
24.02%
₹ 4,257.00
-4.42%
Net Profit (Rs cr)
₹ 3,593.00
₹ 1,102.00
226.04%
₹ 3,442.00
4.39%
Diluted EPS (Rs)
₹ 13.26
₹ 4.06
₹ 12.69
EBITDA Margins
18.01%
16.70%
19.06%
Net Margins
15.90%
5.61%
15.41%
Net profits for Q4 were up 226% at Rs.3,593 crore, which can be misleading as it was due to sharply deferred tax write-off in Mar-21 quarter. Sequential profit growth was a more reasonable 4.39%. EBITDA margins for Q4 was 22.3% while the EBIT margins stood at 17.9%. HCL Tech has provided EBIT margin guidance for FY23 at 18-20%. Net margins were 15.90% in Mar-22 quarter compared to 5.61% in Mar-21. NPM was higher by 49 basis points on a sequential basis, compared to Dec-21 quarter.