HCL Tech Results Q3 Highlights: Key Takeaways from the December Quarter FY25

HCL Technologies has reported its financial results for the third quarter of FY25, showcasing robust performance across key metrics. Below are the highlights, insights, and market trends related to the results announcement.

Key Financial Highlights

1. Net Profit:
   • ₹4,591 crore, a 5.5% YoY increase from ₹4,350 crore in Q3 FY24.
   • Sequentially, net profit rose 8.4% QoQ.
2. Revenue:
   • Revenue from operations stood at ₹29,890 crore, up 5.1% YoY from ₹28,446 crore in the same quarter last year.
   • Sequential growth of 3.6% QoQ compared to ₹28,862 crore in Q2 FY25.
3. Earnings Before Interest and Taxes (EBIT):
   • EBIT reached ₹5,821 crore, reflecting an 8.6% QoQ growth and a 3.7% YoY growth.
   • EBIT margins stood at 19.5%, up 93 bps QoQ but down 25 bps YoY.
4. Deal Wins:
   • Total new deal wins were valued at $2.1 billion, signaling strong demand for HCL’s digital and AI services.
5. Attrition:
   • LTM attrition was at 13.2%, slightly higher than the 12.8% recorded a year ago.

Geographic Revenue Breakdown

Region	Q3FY25	Q2FY25	Q3FY24	YoY CC Growth
Americas	65.5%	65.1%	64.5%	6.2%
Europe	28.2%	28.4%	29.0%	2.6%
Rest of World (ROW)	6.3%	6.5%	6.4%	2.9%

Management Commentary

• C Vijayakumar, CEO & Managing Director:
  “HCLTech has delivered solid growth this quarter with 3.8% QoQ constant currency growth. Our strong deal bookings, valued at $2.1 billion, reflect the confidence clients place in our digital and AI-driven solutions.”
• Shiv Walia, Chief Financial Officer:
  “Our sharp focus on topline growth and healthy margins is evident with EBIT margins at 19.5%, the highest-ever EBIT of ₹5,821 crore, and net profit of ₹4,591 crore. We end this quarter with a robust cash balance of ₹27,707 crore.”

Dividend Announcement

The Board of Directors declared a fourth interim dividend of ₹18 per share, including a special ₹6 dividend to commemorate 25 years of HCL’s public listing.

• Record Date: January 17, 2025
• Payment Date: January 24, 2025

FY25 Guidance

• Revenue Growth: 4.5% – 5.0% YoY in constant currency
• Services Revenue Growth: 4.5% – 5.0% YoY in constant currency
• EBIT Margin: 18.0% – 19.0%

Market Trends

• Ahead of the results, HCL Tech’s shares closed at ₹1,975 on the NSE, down 1%.
• The company’s shares have seen fluctuations, with the day’s high at ₹2,000.40 and low at ₹1,980.

Outlook and Analysis

HCL Tech’s focus on AI, digital transformation, and automation continues to drive its business growth. Its strong deal pipeline, improving margins, and consistent dividend payouts reflect a robust business model.

The company’s ₹2.1 billion deal wins and strategic positioning in AI-led services underscore its potential for sustained growth in the IT sector. However, rising attrition and the challenging global economic environment remain key areas to monitor.

HCL Tech’s financial resilience and innovative offerings make it a standout performer in the IT space, reaffirming its strong market position.