HCL Technologies Q3 net profit falls 13.6 per cent to Rs 3,442 crore

HCL Technologies on Friday reported net profit of Rs 3,442 crore for the third quarter of 2021-22, which is 13.6 per cent lower than Rs 3,969 crore profit reported during the corresponding quarter of previous year. 

However, the company's revenue increased by 15.7 per cent to Rs 22,331 crore during October-December 2021 period as compared to Rs 19,302 crore reported during the corresponding period of 2020. 

HCL Technologies Board of Directors on Friday approved the unaudited (consolidated & standalone) Financial results of the Company for the quarter and nine months ended December 31, 2021.

The company's gross cash stands at $2,666 million and net cash at $2,140 million at the end of December 31, 2021. "We have delivered all round stellar performance this quarter with a revenue growth of 7.6 per cent in constant currency QoQ, the highest recorded in the last 46 quarters. Our Products & Platforms segment led the growth with 24.5 per cent followed by Engineering and R&D Services with 8.3 per cent and IT & Business Services with 4.7 per cent, all in QoQ," said C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies. 

"Our future looks bright as we had a very strong net new booking of $2.1 billion, a 64 per cent YoY increase. We also added more than 10,000 to our employee strength this quarter. I believe we continue to be in a vantage position to address sustained demand momentum as our investments on strategic priorities like digital, cloud & engineering capabilities and our talent development plans are showing strong returns," Vijayakumar said in a statement. 

Elaborating on the financial numbers Prateek Aggarwal, Chief Financial Officer, HCL Technologies, said, "Profitability was maintained at EBITDA of 24.2 per cent and EBIT of 19.1 per cent (both Ind AS). Net Income Margin for the quarter was 15.4 per cent. Free Cash Flow (FCF) increased 33.7 per cent QoQ at $521 million, 114 per cent of Net Income. LTM FCF is at 102 per cent of Net Income." "We closed the quarter with Gross Cash at $2.7 billion and Net Cash at $2.1 billion, despite higher dividend payout, purchase of shares by the RSU Trust and acquisition of balance shareholding in Actian during the quarter," Aggarwal added