HCL Technologies Q1FY23 result : Net profit fall 8.8% to ₹3,281 Cr, service revenue up 2.3% QOQ

Cash Generation continues to be robust: Generated Operating Cash Flow of US$ 2,013 mn and Free Cash Flow of US $1,762 mn on LTM basis, being 112% and 98% of Net Income respectively. Gross Cash stands at US $2,249 mn and Net Cash at US $1,724 mn at the end of June 30th 2022

HCL Q1FY23 result
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HCL Technologies is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age. Its technology products and services are built on four decades of innovation, a strong culture of invention and risk-taking, and a relentless focus on customer relationships.

HCL also takes pride in its many diversity, social responsibility, sustainability, and education initiatives. Through its worldwide network of R&D facilities and co-innovation labs, global delivery capabilities, and over 208,000+ ‘Ideapreneurs’ across 52 countries, HCL delivers holistic services across industry verticals to leading enterprises, including 250 of the Fortune 500 and 650 of the Global 2000.

The company has posted its Q1FY23 financial results on 12 July, 2022 today, the details are as below :

(I) Consolidated Financial Results for Quarter Ended (QOQ comparison):

The company has reported, a consolidated Total Income of ₹23,873 crore in the quarter ended on June 30, 2022 as against ₹22,914 crore in the last quarter ended on Mar 31, 2022, increased by 4.18%.

The company has posted a consolidated Net Profit of ₹3,281 crore in the quarter ended on March 31, 2022 as against ₹3,599 crore in the previous quarter ended on June 30, 2022. The PAT surges down by 8.83%.

The status of the EPS of the company stood at ₹12.12 as on March 31, 2022 compared to the previous quarter ended on June, 2022 which was ₹13.26, down by 8.59%.

₹*June 30, 2022 (Q1FY23)March 31, 2022(Q4FY22)
Total Income23,87322,914
Total Expenses1953618593
PBT /(Loss)43374321
Total Tax /(credit)1056721
PAT /(Loss) [to the owners]3,2813,599
*figures are in Crores

(I) Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹23,873 crore in the financial year ended on June 30, 2022 as against ₹20,323 crore for the same quarter ended on last year June 30, 2021 that increased by 17.46%.

The company has posted a consolidated Net Profit of ₹3,281 crore in the financial year ended on June 30, 2022 as against ₹3,213 crore for the same quarter ended on last year June 30, 2021. The PAT surges up by 2.11%.

The status of the EPS of the company stood at ₹12.12 as on June 30, 2022 compared to the quarter ended on last year June 30, 2021 which was ₹11.81, up by 2.62%.

₹*June 30, 2022 (Q1FY23)June 30, 2021 (Q1FY22)
Total Income23,87320,323
Total Expenses1953616223
PBT /(Loss)43374100
Total Tax /(credit)1056887
PAT /(Loss) [to the owners]3,2813,213
*figures are in Crores

(III) Key Highlights about the Performance :

  • Services Revenue (ITBS and ERS) up 2.3% QOQ & up 19.0% YoY in Constant Currency
  • EBITDA margin at 21.2%; EBIT margin at 17.0%
  • Net Income at US$ 424 mn (Net Income margin at 14.0%) down 10.7% QoQ & down 2.5% YoY
  • Corporate and Financial Highlights :

  1. Strong Booking performance: For Q1 FY’23, TCV of New Deal wins at US$ 2,054 mn, registering 23.4%
    YoY growth of which-
    • Services TCV at US$ 1,950 mn enabled by 7 net new large Services deal wins;
    • Products TCV at US$ 104 mn enabled by 9 net new large Product deal wins;
    • Significant number of small deals. ACV is higher by 17.9% on a YoY basis.
  2. Q1 FY’23 Revenue growth at 2.7% QoQ cc (15.6% YoY cc).
    a. During Q1, Services business has grown at 2.3% QoQ cc (19.0% YoY cc).
    b. Engineering and R&D Services grew at robust 3.7% QoQ cc (23.0% YoY cc) driven by traction in digital engineering and IoT Works.
    c. IT and Business Services grew at healthy 2.0% QoQ cc (18.1% YoY cc), driven by acceleration in cloud transformation and application and data modernization.
  3. a. Growth momentum led by Technology & Services (34.2%), Telecom, Media, Publishing & Entertainment (29.2%), b.Manufacturing (19.1%), Financial Services (16.4%), Lifesciences & Healthcare (15.7%) and Public Services (15.2%).
  4. Geography growth powered by Europe (22.5%), Americas (17.5%) and ROW (18.2%)
HCL Q1FY23 result cash statements overview | *$ in million
Market Times/company results

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