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HCL Tech slightly reduces US dependence: Key Q3 takeaways

HCL Tech posted an all-time high quarterly profit at Rs 3,037 crore.

, ETMarkets.com|
Last Updated: Jan 17, 2020, 05.55 PM IST
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HCL Tech added 49 new clients – two in the $100 million plus club, two in 50 million plus.

HCL Technologies on Friday reported strong growth for December quarter as profit and revenues hit record highs. The company added nearly 50 clients during the quarter.

“We continued our stellar performance and crossed a revenue run rate of $10 billion this quarter. Our revenues have grown 16.4 per cent YoY in constant currency terms and delivered a strong 20.2 per cent EBIT. Within two quarters of its inception, HCL Software has already onboarded 4,600 customers,” said C Vijayakumar, President & CEO, HCL Technologies.

Here are key takeaways:

Profit, revenues at all-time high
HCL Tech posted an all-time high quarterly profit at Rs 3,037 crore. Revenues at Rs 18,135 crore hit a record high. The profit growth was at 16.3 per cent while topline expanded 15.5 per cent. In terms on Indian accounting standard, HCL Tech’s Q3 profit came in at Rs 2,944, also an all-time high.

Dependency on US declines
As many as 62.8 per cent of HCL Tech’s December quarter revenue came in from the US, down from 64.4 per cent in the corresponding quarter last year. The revenue share of Europe stood at 29.2 per cent, up from 28.2 per cent. Rest of the World contributed 8 per cent.

Manufacturing revenue jumps
The share of revenue from services provided to manufacturing companies jumped by 320 basis points to 20.9 per cent. The firm encroached on the shares of technology and services mix, which contributed 15.1 per cent of the revenue, down from 18.7 per cent, same quarter last year.

Adds 49 new clients in Q3
HCL’s client tally stood at 1,322 at the end of December quarter. The company added 49 new clients – two in the $100 million plus club, two in 50 million plus, one in $20 million-plus, three in $5 million-plus and 45 in $1 million-plus segments. However, it lost four clients in the $10 million-plus bracket.

Dividend at Rs 2 per share
The company’s board approved a dividend of Rs 2 per share on double the number of shares post bonus issue. This marks the 68th consecutive quarter of dividend payout by HCL, it said.
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