HCL Tech Q2 net profit rises 9.9% to Rs 3,833 crore

New Delhi: HCL Technologies on Thursday posted a 9.9 per cent increase in consolidated net profit to Rs 3,833 crore in the second quarter on account of new deal wins and enhancing efficiency.

The company had posted a net profit of Rs 3,487 crore in the same period a year ago.

HCL Tech reduced the company revenue growth guidance for the full year in the range of 5-6 per cent from 6-8 per cent projected at the end of the June 2023 quarter due to below-expectation performance of the company during FY24 first half.

The consolidated revenue from operations during the reported quarter increased by 8 per cent to Rs 26,672 crore from Rs 24,686 crore in the September 2022 quarter.

In constant currency terms, HCL Tech revenue was up 3.4 per cent on a year-on-year basis.

“This quarter was definitely a very strong quarter across all dimensions of performance. We recorded an 18.5 per cent operating margin, a 154 basis point improvement at the company level. “This margin is primarily driving efficiencies in our managed service engagements. We also significantly reduced our dependence on subcontractors. We also controlled some of our discretionary spending,” HCL Tech CEO and Managing Director C Vijayakumar said.

Talking about a reduction in growth guidance, Vijayakumar said the growth during the first half has been much lesser than expected, and the company will need to post strong growth on a sequential-quarter basis, both in the third and fourth quarter, to match the growth guidance for the full-year.