BENGALURU: HCL Technologies’ revenue grew 2.7% sequentially in the June quarter, and 15.6% year-on-year in constant currency. In dollar terms, revenue was up 11.2% year-on-year to $3 billion. Its larger Indian peer TCS, which announced its results last week, grew its constant currency revenue 3.5% sequentially, and 15.5% year-on-year.
C Vijayakumar, CEO & MD of HCL Technologies, said the company had started FY23 on a strong note. “Our services business continues to deliver an increasing growth trajectory, growing at 19% year-on-year and 2.3% quarter-on-quarter. The growth momentum in our services business and engineering business is led by engineering R&D services and digital applications services with cloud transformation being the central theme across all services and verticals. We also saw a strong recovery in the products and platforms business that grew 5.6% sequentially and 1.1% year on year,” he said. Engineering and R&D services grew 3.7% sequentially and 23% year-on-year, driven by traction in digital engineering and IoT services.
The company expects to grow between 12% and 14% in constant currency in 2022-23, and EBIT margin is expected to be between 18% and 20%. The company’s net profit dropped 10.7% sequentially and $2.5% year-on-year to $424 million. EBIT margin fell to 17%, a 4.1% drop sequentially and 3.7% decline in the year-ago period. Vijayakumar said margins in the services business are under pressure mainly due to increased talent cost. “We have undertaken appropriate actions to improve our profitability and the results of which will start reflecting in the coming quarters,” he said.
In the June quarter, new deals worth $2 billion were won, a 23.4% year-on-year growth. The services business clocked a total contract value of $1.9 billion. , with seven large new deal wins.The firm has a total employee base of 2.1 lakh. Its attrition rose 200 basis points sequentially to 23.8%. HCL has declared a dividend of Rs 10 per share.
