Last Updated on January 18, 2024 by BFSLTeam BFSLTeam
On January 12, 2024, HCL Technologies Limited (BSE, NSE: HCLTECH) announced its Q3 2023-24 financial results, and the IT giant has reported a jump in PAT QoQ and a rise in Revenue along with the declaration of a dividend.
Table of Content
Consolidated Revenue Result Takeaways
Here are the overall consolidated highlights in Q3 results:
- HCL reported an INR Revenue of ₹28,446 Cr, a rise of 6.7% QoQ and a rise of 6.5% YoY.
- In terms of constant currency, the Revenue rise was 6.0% QoQ and 4.3% YoY.
- The company’s US Revenue was US$3,415 Mn, a rise of 5.9% QoQ and 5.3% YoY.
- The segment of Services saw a rise in Revenue, up by 3.1% QoQ and up 4.2% YoY driven by efficient growth in Media, Telecommunications, Entertainment, and Publishing (up by 25.9% QoQ).
- The Revenue generated from Services surpassed the annual run rate of ₹1,00,000 Cr (US$12 Bn).
- The Digital CC Revenue was up 5.0% YoY, contributing to 37.7% of the segment of Services.
- The overall growth of the tech icon in Q3 was led by HCLSoftware CC Revenue (witnessing a rise of 5.0% YoY).
- Q3 witnessed HCLSoftware ARR at US$ 1.06 Bn plus, a rise of 2.9% YoY on a constant currency basis.
Additional Read: Q3 Results Dashboard
Return and Profitability Highlights
All the signs in Q3 results for the technology industry leader saw ups. The result highlights in terms of return and profitability metrics are mentioned below:
- For Q3, EBIT stood at ₹5,615 Cr, making up 19.8% of Revenue. EBIT was up 13.8% QoQ and up 7.4% YoY.
- Net Income for Q3 was at ₹4,350 Cr, making up 15.3% of Revenue. Net Income was up by 13.5% QoQ and 6.2% YoY.
- On an LTM basis, the ROIC of the company was at 32.8%, up by 301 bps YoY. The same metric for Services was up by 273 bps YoY, standing at 40.1%.
- A dividend of ₹12 per equity share was announced for the 84th consecutive quarter.
Other Q3 Result Features
HCL Technologies has reported some key results in terms of its business growth with Q3 results:
- Concerning segment-wise revenue growth, the IT and Business Services segment and the Engineering and R&D segments have enhanced Q3 company growth.
- The company verticals of Financial Services and Manufacturing have led to the growth of the company in Q3.
- HCL Technologies stands out as the only technology service provider to win six ISG Star of Excellence Awards (2023).
- In the third quarter of FY24, HCL Technologies won large deals – 18 in total. Out of these, 12 are in software and six are in services. Deals have been won across a diverse range of industries like Life Sciences, Retail and CPG, Healthcare, Financial Services, and Public Services, among others.
- Among the deals won are the expansion of partnerships with a Fortune 50 CPG company, a European-based financial services provider, and an international integrated energy leader.
- HCL Technologies also boasts of key generative AI deal wins in Q3.
- The total headcount of HCL Technologies employee base stood at 222,270, out of which 207,920 have technical expertise.
- In Q3, the company had the distinction of being the highest-ranked Indian-based IT company on the Forbes Best Employers 2023 List.
- HCL Technologies has been positioned as the Leader by many ranking organisations including the Everest Group, Avasant, IDC Marketspace, and more.
Q3 Management Commentary Highlights
The MD and CEO of HCL Technologies commented on the results and added the following highlights:
- There is a robust momentum in the software and services businesses of HCL Technologies driving company growth.
- The company has delivered a stellar operating margin of 19.8%, an improvement of 126 bps QoQ and 16 bps YoY.
- There is a significant increase in support and subscription revenue. ARR is also consistent in its growth.
- The company’s continued investment in generative AI and cloud capabilities makes it strong enough to emerge as a successful contender in the industry, addressing customers’ evolving requirements.
Additional Read: HCL technologies Share Price
Financial Results
Here are the financial results of Q3 in a nutshell (all figures in ₹ Cr, except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | Q2 FY 2023-24 |
| Revenues | 28,446 | 26,700 | 26,672 |
| EBITDA | 6,758 | 6,365 | 5,944 |
| Gross Profit | 10,448 | 9,980 | 9,659 |
| Net Income | 4,350 | 4,096 | 3,832 |
Summary of Q3 Results
HCL Technology is an Indian-headquartered company with a robust global presence housing over 224,000 people all over the globe. The company has a healthy presence in 60 countries and it is responsible for offering industry-led capabilities focused on engineering, digital, cloud, and AI areas, empowered by a diverse portfolio of impressive technology services to major verticals from Financial Services to Healthcare. The company has reported outstanding consecutive growth in Q3 and has crossed a substantial milestone of ₹1,00,000 Cr on a run rate basis. The company is poised for future success as it has delivered its highest-ever results, especially an EBIT of ₹5,615 crores.
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Source: BSE – HCL Technologies Press Release
