HCL Technologies (HCLTech) recently released its financial results for the third quarter ending December 31, 2024. Here’s an overview of their performance:
Key Financial Metrics:
- Revenue: ₹29,890 crore, a 5% year-on-year (YoY) increase from ₹28,446 crore in the same quarter of the previous year.
- Net Profit: ₹4,591 crore, marking a 5.5% YoY rise compared to ₹4,350 crore in the corresponding quarter last year.
- EBIT Margin: 19.5%, indicating a stable operational efficiency.
- Guidance Update:
- HCL Tech has revised its revenue growth forecast for the fiscal year to a range of 4.5% to 5%, narrowing from the previous estimate of 3.5% to 5%.
- Deal Wins:
- The company secured new deals worth $2.1 billion during the quarter, reflecting robust client engagement and business development efforts.
- Attrition Rate:
- The attrition rate slightly increased to 13.2% for the quarter, indicating a marginal rise in employee turnover.
- Market Reaction:
- Despite the positive growth figures, HCL Tech’s shares declined by approximately 8% following the earnings announcement. This drop is attributed to the revenue figures falling short of market expectations and a conservative revenue growth forecast.
- Conclusion:
- HCL Tech continues to demonstrate growth in revenue and profit, supported by significant deal acquisitions. However, the market’s reaction suggests that investors anticipated stronger performance and a more optimistic outlook. The company may need to address these expectations in future quarters to bolster investor confidence.
