On consolidated basis
Quarter ended March 2024 compared
with Quarter ended December 2023.
Net sales (including other operating income) of HCL Technologies has increased
0.19% to Rs 28499 crore.
Operating profit margin has declined
from 23.86% to 21.46%, leading to 9.87% decline in operating profit to Rs
6,117.00 crore. Purchase of finished goods cost rose from 1.46% to
1.73%. Employee cost increased from 55.63% to 57.41%.
Other expenses rose from 19.10% to 19.38%. Contract job
process charges fell from 13.09% to 13.03%.
Other income rose 12.43% to Rs 416
crore. PBIDT fell 8.72% to Rs 6533 crore. Provision for
interest rose 22.14% to Rs 171 crore. Loan funds remained
nil.
PBDT fell 9.33% to Rs 6362
crore. Provision for depreciation fell 4.37% to Rs 1093 crore.
Profit before tax down 10.30% to Rs
5,269.00 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 1274 crore, compared to
Rs 1523 crore. Effective tax rate was 24.18% compared to 25.93%.
Minority interest increased 800% to
Rs 9.00 crore. Net profit attributable to owners of the company
decreased 8.37% to Rs 3,986.00 crore.
Promoters’ stake was 60.81% as of 31
March 2024 ,compared to 60.81% as of 31 December 2023 .
Quarter ended March 2024 compared
with Quarter ended March 2023.
Net sales (including other operating income) of HCL Technologies has increased
7.11% to Rs 28499 crore. Sales of Engineering and R&D Services
segment has gone up 7.39% to Rs 4,590.00 crore (accounting for 16.11% of total
sales). Sales of IT & Business Services segment has gone up
7.98% to Rs 21,199.00 crore (accounting for 74.39% of total
sales). Sales of HCL Software segment has gone up 0.37% to Rs
2,710.00 crore (accounting for 9.51% of total sales). Inter-segment
sales rose Rs -117.00 crore to Rs 131.00 crore.
Profit before interest, tax and
other unallocable items (PBIT) has jumped 3.76% to Rs 5,018.00
crore. PBIT of Engineering and R&D Services segment rose 12.36%
to Rs 909.00 crore (accounting for 18.11% of total PBIT). PBIT of
Products & Platforms segment fell 7.38% to Rs 602.00 crore (accounting for
12.00% of total PBIT). PBIT of IT & Business Services segment
rose 3.85% to Rs 3,507.00 crore (accounting for 69.89% of total PBIT).
PBIT margin of Engineering and R&D
Services segment rose from 18.93% to 19.80%. PBIT margin of IT &
Business Services segment fell from 17.20% to 16.54%. Overall PBIT
margin fell from 18.18% to 17.61%.
Operating profit margin has declined
from 22.04% to 21.46%, leading to 4.33% rise in operating profit to Rs 6,117.00
crore. Purchase of finished goods cost fell from 2.17% to 1.73%.
Employee cost increased from 55.09% to 57.41%. Other
expenses fell from 20.72% to 19.38%. Contract job process charges
fell from 14.22% to 13.03%.
Other income fell 8.17% to Rs 416
crore. PBIDT rose 3.44% to Rs 6533 crore. Provision for
interest rose 81.91% to Rs 171 crore. Loan funds rose to Rs 5,756.00
crore as of 31 March 2024 from Rs 4,786.00 crore as of 31 March
2023. Inventories declined from Rs 228.00 crore as of 31 March 2023
to Rs 185.00 crore as of 31 March 2024. Sundry debtors were lower at
Rs 19,483.00 crore as of 31 March 2024 compared to Rs 19,572.00 crore as of 31
March 2023. Cash and bank balance rose to Rs 20,150.00 crore as of
31 March 2024 from Rs 14,724.00 crore as of 31 March
2023. Investments rose to Rs 7,137.00 crore as of 31 March 2024 from
Rs 5,495.00 crore as of 31 March 2023 .
PBDT rose 2.25% to Rs 6362
crore. Provision for depreciation rose 6.43% to Rs 1093 crore. Fixed
assets declined from Rs 16,092.00 crore as of 31 March 2023 to Rs 15,039.00
crore as of 31 March 2024. Intangible assets increased from Rs
18,567.00 crore to Rs 20,132.00 crore.
Profit before tax grew 1.42% to Rs
5,269.00 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 1274 crore, compared to
Rs 1214 crore. Effective tax rate was 24.18% compared to 23.37%.
Net profit attributable to owners of
the company increased 0.08% to Rs 3,986.00 crore.
Equity capital stood at Rs 543.00
crore as of 31 March 2024 to Rs 543.00 crore as of 31 March
2023. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 60.81% as of 31
March 2024 ,compared to 60.81% as of 31 March 2023 .
Full year results analysis.
Net sales (including other operating income) of HCL Technologies has increased
8.34% to Rs 109913 crore. Sales of Engineering and R&D Services
segment has gone up 4.64% to Rs 17,581.00 crore (accounting for 16.00% of total
sales). Sales of IT & Business Services segment has gone up
9.64% to Rs 81,148.00 crore (accounting for 73.83% of total
sales). Sales of HCL Software segment has gone up 5.12% to Rs
11,184.00 crore (accounting for 10.18% of total sales). Inter-segment
sales rose Rs 470.00 crore to Rs 508.00 crore.
Profit before interest, tax and
other unallocable items (PBIT) has jumped 8.35% to Rs 20,027.00
crore. PBIT of Engineering and R&D Services segment fell 0.03%
to Rs 3,388.00 crore (accounting for 16.92% of total PBIT). PBIT of
Products & Platforms segment rose 3.30% to Rs 2,883.00 crore (accounting
for 14.40% of total PBIT). PBIT of IT & Business Services
segment rose 11.81% to Rs 13,756.00 crore (accounting for 68.69% of total
PBIT).
PBIT margin of Engineering and
R&D Services segment fell from 20.17% to 19.27%. PBIT margin of
IT & Business Services segment rose from 16.62% to
16.95%. Overall PBIT margin rose from 18.22% to 18.22%.
Operating profit margin has declined
from 22.30% to 22.02%, leading to 6.94% rise in operating profit to Rs
24,198.00 crore. Purchase of finished goods cost fell from 2.04% to
1.60%. Employee cost increased from 54.45% to 56.87%.
Other expenses fell from 21.22% to 19.51%. Contract job
process charges fell from 14.73% to 13.27%.
Other income rose 10.09% to Rs 1495
crore. PBIDT rose 7.12% to Rs 25693 crore. Provision for
interest rose 56.66% to Rs 553 crore. Loan funds rose to Rs 5,756.00
crore as of 31 March 2024 from Rs 4,786.00 crore as of 31 March
2023. Inventories declined from Rs 228.00 crore as of 31 March 2023
to Rs 185.00 crore as of 31 March 2024. Sundry debtors were lower at
Rs 19,483.00 crore as of 31 March 2024 compared to Rs 19,572.00 crore as of 31
March 2023. Cash and bank balance rose to Rs 20,150.00 crore as of 31
March 2024 from Rs 14,724.00 crore as of 31 March 2023. Investments
rose to Rs 7,137.00 crore as of 31 March 2024 from Rs 5,495.00 crore as of 31
March 2023 .
PBDT rose 6.38% to Rs 25140
crore. Provision for depreciation rose 0.68% to Rs 4173 crore. Fixed
assets declined from Rs 16,092.00 crore as of 31 March 2023 to Rs 15,039.00
crore as of 31 March 2024. Intangible assets increased from Rs
18,567.00 crore to Rs 20,132.00 crore.
Profit before tax grew 7.59% to Rs
20,967.00 crore. Share of profit/loss were nil in both the
periods. Provision for tax was expense of Rs 5257 crore, compared to
Rs 4643 crore. Effective tax rate was 25.07% compared to 23.82%.
Net profit attributable to owners of
the company increased 5.73% to Rs 15,702.00 crore.
Equity capital stood at Rs 543.00
crore as of 31 March 2024 to Rs 543.00 crore as of 31 March
2023. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 60.81% as of 31
March 2024 ,compared to 60.81% as of 31 March 2023 .
Cash flow from operating activities
increased to Rs 22,448.00 crore for year ended March 2024 from Rs 18,009.00
crore for year ended March 2023. Cash flow used in acquiring fixed
assets during the year ended March 2024 stood at Rs 1,048.00 crore, compared to
Rs 1,661.00 crore during the year ended March 2023.
Others:
For FY2025, total revenue growth is expected to be in the range of 3-5%
YoY in CC.
The company continues to maintain its guidance for EBIT margin for FY25
that is between 18-19%.
Dividend: The
board has declared dividend of Rs 18 per equity share of Rs 5 each.
Management Commentary:
Commenting on the performance Roshni Nadar Malhotra-Chairperson
said “ Led by a differentiated
portfolio, HCLTech continues to grow despite global economic and geopolitical
headwinds. Our focus on doing business sustainably and responsibly is sharper
than ever as we scale our community initiatives beyond India."
C VijayaKumar-CEO & MD said “HCLTech continues to lead
the industry in FY24 with good USD revenue growth of 5.4% YoY during
challenging times through our strong commitment to our clients and our
people. More importantly, we have
translated this growth into even higher value creation for our shareholders
with our OCF coming at US$ 2,711 Mn, up 21.6% YoY and FCF at US$ 2,584 Mn, up
27.7% YoY. As we look ahead, global enterprise technology spend will only grow
with adoption of AI. We are well positioned to capitalize with our AI led
propositions, Global delivery model and ideal mix of technology services and
products.”
Prateek Agarwal-CFO said “HCLTech’s FY24 performance
underlines the resilience of our business model with Revenue at INR 109,913 Cr,
growing 8.3%. We delivered this industry leading growth with EBIT at 20,027 Cr,
up 8.4%. Net Income (NI) for the year came in at ? 15,702 crores, up 5.7%,
translating to an EPS of ? 57.86. Our Board is pleased to declare ? 18/share as
the Dividend for the quarter, bringing the total to ? 52/share for FY24, which
is 90% of the EPS. Our razor-sharp focus on cash generation resulted in OCF/NI
coming at 143% and FCF/NI at 136%. We continue to expand ROIC, with the
Company’s ROIC up 341 bps YoY at 33.8% and Services’ ROIC up 430 bps YoY at
41.6%.”
| HCL Technologies : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202403 | 202303 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 28,499.00 | 26,606.00 | 7.11 | 1,09,913.00 | 1,01,456.00 | 8.34 | | OPM (%) | 21.46 | 22.04 | -57 bps | 22.02 | 22.30 | -29 bps | | OP | 6,117.00 | 5,863.00 | 4.33 | 24,198.00 | 22,628.00 | 6.94 | | Other Inc. | 416.00 | 453.00 | -8.17 | 1,495.00 | 1,358.00 | 10.09 | | PBIDT | 6,533.00 | 6,316.00 | 3.44 | 25,693.00 | 23,986.00 | 7.12 | | Interest | 171.00 | 94.00 | 81.91 | 553.00 | 353.00 | 56.66 | | PBDT | 6,362.00 | 6,222.00 | 2.25 | 25,140.00 | 23,633.00 | 6.38 | | Depreciation | 1093 | 1027 | 6.43 | 4173 | 4145 | 0.68 | | PBT | 5,269.00 | 5,195.00 | 1.42 | 20967 | 19488 | 7.59 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 5269 | 5195 | 1.42 | 20967 | 19488 | 7.59 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 5269 | 5195 | 1.42 | 20967 | 19488 | 7.59 | | Taxation | 1274 | 1214 | 4.94 | 5257 | 4643 | 13.22 | | PAT | 3995 | 3981 | 0.35 | 15710 | 14845 | 5.83 | | Minority Interest (MI) | 9 | -2 | PL | 8 | -6 | PL | | Net profit | 3986 | 3983 | 0.08 | 15702 | 14851 | 5.73 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 3986 | 3983 | 0.08 | 15702 | 14851 | 5.73 | | EPS (Rs)* | 14.69 | 14.68 | 0.08 | 57.86 | 54.73 | 5.73 | | | * EPS is on current equity of Rs 542.73 crore, Face value of Rs 2, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
|
| HCL Technologies : Consolidated Segment Results | | | Quarter ended | Year ended |
|---|
| % of (Total) | 202403 | 202303 | Var.(%) | % of (Total) | 202403 | 202303 | Var.(%) |
|---|
| Sales | | Software ServicesSoftware Services | 0.00 | 0.00 | 0.00 | - | | Business Processing Outsourcing | 0.00 | 0.00 | 0.00 | - | | Networking | 0.00 | 0.00 | 0.00 | - | | Infrastructure Services | 0.00 | 0.00 | 0.00 | - | | Engineering and R&D Services | 16.11 | 4,590.00 | 4,274.00 | 7.39 | 16.00 | 17,581.00 | 16,802.00 | 4.64 | | Products & Platforms | 0.00 | 0.00 | 0.00 | - | | IT & Business Services | 74.39 | 21,199.00 | 19,632.00 | 7.98 | 73.83 | 81,148.00 | 74,015.00 | 9.64 | | HCL Software | 9.51 | 2,710.00 | 2,700.00 | 0.37 | 10.18 | 11,184.00 | 10,639.00 | 5.12 | | Total Reported Sales | 100.00 | 28,499.00 | 26,606.00 | 7.11 | 100.00 | 1,09,913.00 | 1,01,456.00 | 8.34 | | Less: Inter segment revenues | | 131.00 | -117.00 | LP | | 508.00 | 470.00 | 8.09 | | Net Sales | 100.00 | 28,368.00 | 26,723.00 | 6.16 | 100.00 | 1,09,405.00 | 1,00,986.00 | 8.34 | | PBIT | | Software ServicesSoftware Services | 0.00 | 0.00 | 0.00 | - | | Business Processing Outsourcing | 0.00 | 0.00 | 0.00 | - | | Networking | 0.00 | 0.00 | 0.00 | - | | Infrastructure Services | 0.00 | 0.00 | 0.00 | - | | Engineering and R&D Services | 18.11 | 909.00 | 809.00 | 12.36 | 16.92 | 3,388.00 | 3,389.00 | -0.03 | | Products & Platforms | 12.00 | 602.00 | 650.00 | -7.38 | 14.40 | 2,883.00 | 2,791.00 | 3.30 | | IT & Business Services | 69.89 | 3,507.00 | 3,377.00 | 3.85 | 68.69 | 13,756.00 | 12,303.00 | 11.81 | | HCL Software | 0.00 | 0.00 | 0.00 | - | | Total PBIT | 100.00 | 5,018.00 | 4,836.00 | 3.76 | 100.00 | 20,027.00 | 18,483.00 | 8.35 | | Less : Interest | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Add: Other un-allcoable | | 251.00 | 359.00 | -30.08 | | 940.00 | 1,005.00 | -6.47 | | PBIT Margin(%) | | Software ServicesSoftware Services | | 0.00 | 0.00 | 0.00 | | Business Processing Outsourcing | | 0.00 | 0.00 | 0.00 | | Networking | | 0.00 | 0.00 | 0.00 | | Infrastructure Services | | 0.00 | 0.00 | 0.00 | | Engineering and R&D Services | | 19.80 | 18.93 | 87.55 | | 19.27 | 20.17 | -89.94 | | Products & Platforms | | 0.00 | 0.00 | 0.00 | | IT & Business Services | | 16.54 | 17.20 | -65.83 | | 16.95 | 16.62 | 32.94 | | HCL Software | | 0.00 | 0.00 | 0.00 | | PBT | 100.00 | 5,269.00 | 5,195.00 | 1.42 | 100.00 | 20,967.00 | 19,488.00 | 7.59 |
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