July 15, 2024
New Delhi, India
HCL Tech Q1 Results
HCL Technologies (HCLTech) has announced its Q1 results for the first quarter of FY25, showcasing significant growth in net profit and revenue. The IT giant’s impressive performance has led to a notable increase in its HCL Tech shares. Here’s a detailed breakdown of HCLTech’s Q1FY25 results and their implications for the market.
Key Financial Highlights
- Net Profit Increase: HCLTech’s consolidated net profit for Q1FY25 rose by 20% to Rs 4,257 crore, up from Rs 3,534 crore in the same quarter last year.
- Revenue Growth: The company’s revenue from operations increased by 6.7% year-on-year, reaching Rs 28,057 crore compared to Rs 26,296 crore in Q1FY24.
Dividend Announcement
HCLTech declared an interim dividend of Rs 12 per equity share with a face value of Rs 2 for FY25. The record date for the dividend is set for July 23, 2024, and the payment date is August 1, 2024.
Market Reaction
On July 12, HCLTech’s shares closed 3.3% higher at Rs 1,561.75 per share. As of 11:11 AM on July 15, 2024, HCLTech’s shares were trading at 1,589.85INR up +29.65 or +1.91%
Detailed Financial Metrics
- EBIT Margins: The EBIT margins remained steady at 17.1% on a year-on-year basis.
- Cash Flow: The company reported a robust cash flow generation with LTM FCF at Rs 21,637 crore, representing 133% of PAT and 88% of EBITDA.
- Return on Invested Capital (ROIC): The ROIC for the last twelve months improved by 350 basis points year-on-year to 34.6%, and for the services business, it increased by 476 basis points to 42.8%.
Attrition and Workforce
HCLTech reported an attrition rate of 12.8% for the April to June quarter of FY25. The total employee strength stood at 2,19,401 as of June 30, 2024, with an addition of 8,080 employees, including 1,078 freshers.
Attrition rate is a metric that measures the number of employees who leave an organization over a specific time period, either voluntarily or involuntarily. It’s usually expressed as a percentage and is also known as the churn rate.
Bottom Line
HCLTech’s strong Q1FY25 performance highlights the company’s resilience and strategic growth in a challenging global environment. The significant increase in net profit and revenue, coupled with a healthy dividend announcement, reflects HCLTech’s robust financial health and operational efficiency. Investors and analysts will be keen to see how the company leverages this momentum in the coming quarters.
