29237In view of reduced inflation and expenses, will it be right to invest in IT stocks?
Sequentially net profit was down 40.1%
IT services major HCL Technologies on Friday reported that its consolidated net profit fell by 24.3% on a year-on-year basis to Rs 2,387 crore for the quarter ended March 2021 compared to Rs 3,154 crore earned in the same quarter last year. The company took a hit of Rs 575 crore as it declared a one-time bonus for crossing the $10 billion milestone. Sequentially net profit was down 40.1%.
On the consolidated revenue from operations growth came in rose 5.7%1 to Rs 19,642 crore as against Rs 18,590 crore a year ago. On a sequential basis, top line grew at 1.8%. The EBITDA (earnings before interest, tax, depreciation & amortization) margin for the company expanded by 800 basis points to 26.1%, whereas sequentially it contracted by 640 basis point.
The company declared a total dividend of Rs 16 per share consisting of a 1st interim dividend of Rs.6/- per equity and a special interim dividend of Rs.10/- per equity share of Rs.2/- each for FY 2021-22. The Special Interim Dividend has been declared by the Board in recognition of the company’s recent milestone, crossing the $10 Billion mark in revenue during FY21.
The company registered the highest ever new deal booking this quarter of US $ 3.1 billion with an all-time high exit pipeline.
“The booking and pipeline represent a well-balanced mix of service lines, geographies and industries,” said C Vijayakumar, President & CEO, HCL Technologies
In the pandemic year FY21, HCL Technologies registered a 12.4% growth in profit at Rs 12,435 crore and a 6.7% growth in revenue at Rs 75,379 crore compared to FY20.
Commenting on the annual performance Prateek Aggarwal, CFO of HCL Technologies said, “the best part of the year was the strong operating cash flow generation at US $ 2,602 million, up 49% YoY and free cash flow generation at US $ 2,340 million, up 58% YoY.”
In Q4FY21, HCL Technologies added 9,295 employees to its payrolls on a net basis, up by 5.8% in Q3. The total headcount stood at 1,68,977, a net addition of 18,554 during the year.
HCL Technologies expects revenue in FY22 to grow in double digits in constant currency terms and EBIT (earnings before interest & tax) margin between 19-21%.
While the result was reported post-market hours the script ended down 0.56% at Rs 956.50.