HCL Technologies Reports Strong Q3 Results: Consolidated Net Profit Surges 13.5% to ₹4,350 Crore

HCL Technologies, a leading IT company, showcased robust performance in its Q3FY24 results, revealing a consolidated net profit of ₹4,350 crore—a notable 13.5% increase from the previous quarter. The company's consolidated revenue from operations also witnessed a significant uptick, rising by 6.65% to ₹28,446 crore compared to ₹26,672 crore in Q2FY24.

Key Highlights:

- Consolidated net profit rises by 13.5% to ₹4,350 crore QoQ.

- Consolidated revenue from operations increases by 6.65% to ₹28,446 crore QoQ.

- Revenues in constant currency terms show a 6% QoQ increase and a 4.3% YoY growth, reaching $3,415 million.

- Operating margin for the quarter stands at 19.8%, up 140 basis points QoQ.

- Year-on-year, consolidated net profit grows by 6.2%.

- Shares close 3.85% higher at ₹1,543 apiece on BSE.

Market Expectations:

- Analysts anticipate a nearly 5% sequential rise in consolidated revenue to ₹27,959.40 crore.

- Net profit is projected to increase by almost 7% to ₹4,085 crore, according to estimates from 11 brokerage firms.

- Year-on-year, the topline is expected to rise by 4.7%, while the bottom line may see a marginal 0.3% drop.

- In constant currency terms, analysts predict a 4.6% sequential growth in revenue.

Outlook:

HCLTech's strong performance defies the seasonality challenge faced by the IT sector, outperforming its peers in the December quarter. The upbeat market mood, driven by a rally in IT stocks, led to a 3% increase in the company's shares during today's trade. The positive outlook is supported by the company's historical strength during this seasonally robust period.