IT player HCL Technologies on January 17 reported a 16 percent year-on-year (YoY) and 14.6 percent quarter-on-quarter (QoQ) rise in its net income at Rs 3,037 crore for the quarter ended December 2019.
The company had reported a net income of Rs 2,611 crore in Q3FY19 and Rs 2,651 crore in Q2FY20.
“We continue our stellar performance over the years and have now crossed a revenue run rate of $10 billion this quarter. Our revenues have grown 16.4 percent YoY in constant currency and we have delivered a strong 20.2 percent EBIT. Within two-quarters of its inception, HCL Software has already onboarded 4,600 customers,” said C Vijayakumar, President & CEO, HCL Technologies.
Here are the 5 key takeaways from HCL Tech’s Q3 scorecard:
Healthy growth across segments
HCL’s strong growth at 16.4 percent YoY in constant currency was led by double-digit growth across segments. On YoY constant currency basis, products and platforms segment grew 72.8 percent, followed by IT and business services (10.4 percent) and engineering and R&D services (12.8 percent).
EBITDA margin stood at 24.7 percent, while EBIT margin was at 20.2 percent.
The company announced a dividend of Rs 2 per share on double the number of shares post bonus issue. This is the 68th consecutive quarter of dividend payout, the company said.
FY20 revenues are expected to grow between 16.5 percent to 17 percent in constant currency. FY20 expected operating margin (EBIT) range is from 19 percent to 19.5 percent. Revenue guidance is based on FY19 (April to March) average exchange rates, the company said.
HCL launched a dedicated Google Cloud Business Unit to accelerate enterprise cloud adoption. It also tied up with Microsoft to jointly invest in building next generation digital transformation propositions and solutions around quantum computing and connected automotive vehicle.
Besides, Amazon Web Services (AWS) launched AWS Outposts, their hybrid cloud offering. HCL was selected as the launch consulting partner for strategy and technology advisory services to migrate and run customer’s workload on outposts.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
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