HCL Tech’s Net Profit Increases To 3,593 Crore In The March Quarter

HCL Technologies, an IT services company, reported a net profit of 3,593 crore for the quarter ended March 2022 on Thursday, and expressed optimism about the “buoyant” market environment, citing “strong momentum across verticals and service lines.”
In the previous year, the net profit was 1,102 crore.

In constant currency, HCL Tech expects revenue to increase by 12-14 percent in fiscal 2023.

During the earnings conference, HCL Technologies Chief Executive Officer and Managing Director C Vijayakumar stated that the market environment is “buoyant” and that there is “strong momentum across verticals and service lines.”

The company’s revenue from operations for the fourth quarter of 2021-22 was 22,597 crore, up 15% from the previous year.

The March quarter net profit was 4.4 percent higher than the previous quarter, at 3,593 crore. On a year-over-year basis, net profit increased by 23.9 percent.

“For comparison purposes, net income of Q4 FY’21 and full year FY’21 excludes the impact of one-time milestone bonus paid to employees ($78.8 million, 575 crore net of tax) and DTL (Deferred Tax Liabilities) on Goodwill impact in the tax expense ($165.1 million, 1,222 crore) in Q4 FY’21,” according to a company statement.

These one-time factors had a negative impact on net profit in Q4 FY21.

The net income for the full fiscal year FY22 was 13,499 crore, up from 11,145 crore the previous year.

The total revenue for the fiscal year ended March 31, 2022 was 85,651 crore, up from 75,379 crore in the previous fiscal year.

Mr Vijayakumar said, “We have delivered yet another stellar quarter in our services business, with revenue up 5% quarter-on-quarter and up 17.5 percent year-on-year in constant currency.”

The board of directors of the company has declared an interim dividend of 18 per equity share of 2 each for the fiscal year 2022-23.

“Our board is pleased to announce a quarterly dividend of 18 per share, bringing the total payout for the year to 44 per share…, 88.4 percent of EPS (Earnings Per Share), higher than the guided range of 75 percent,” said Prateek Aggarwal, HCL Technologies Ltd’s Chief Financial Officer.

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