HCL Technologies Q4FY22 and Year Ended result : Revenue at ₹ 85,651 crores, up 13.6% YoY

Gross Cash stands at US$ 2,914 mn and Net Cash at US$ 2,388 mn at the end of March 31st, 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, reported its Q4FY22 and year ended financial results on 21 April, 2022. The result details are as following :

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

The company has reported, a consolidated Total Income of ₹22,914 crore in the quarter ended on March 31, 2022 as against ₹19,885 crore in the corresponding quarter ended last year on Mar 31, 2021, increased by 15.23%.

The company has posted a consolidated Net Profit of ₹3,593 crore in the quarter ended on March 31, 2022 as against ₹1,102 crore in the corresponding quarter ended in last year on Mar 31, 2021. The PAT surges up by 226.04%.

The status of the EPS of the company stood at ₹13.26 as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹4.06, up by 226.60%.

₹*Mar 31, 2022Dec 31, 21Mar 31, 21
Total Income22,91422,58619,885
Total Expenses185931815616518
Total Tax /(credit)7219822256
PAT /(Loss)3,5933,4421,102
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹86,718 crore in the financial year ended on March 31, 2022 as against ₹76,306 crore for the financial year ended on Mar 31, 2021, increased by 13.65%.

The company has posted a consolidated Net Profit of ₹13,499 crore in the financial year ended on March 31, 2022 as against ₹11,145 crore for the financial year ended on March 31, 2021. The PAT surges up by 21.12%.

The status of the EPS of the company stood at ₹49.77 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹41.07, up by 21.18%.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income86,71876,306
Total Expenses6976660453
Total Tax /(credit)34284684
PAT /(Loss)13,49911,145
*figures are in Crores

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(III) Key Highlights about the Performance :

a) FY’22 RESULTS

  • Revenue at ₹ 85,651 crores; up 13.6% YoY
  • Net Income at ₹ 13,499 crores; up 4.3% YoY
  • EBITDA margin at 24.0%; EBIT margin at 18.9%
  • Services Revenue crossed the US$ 10 bn milestone and registered a growth of 14.9% YoY for FY’22.

b) FY 2023 Guidance

  • Revenue expected to grow between 12% to 14% in constant currency.
  • EBIT margin expected to be between 18% to 20%

c) Corporate Highlights

Strong Booking performance: For full year FY’22, TCV of New Deal wins at US$ 8,308 mn, registering
14% YoY growth. ACV is higher by 21% YoY on full year basis.
TCV (what is Total Contract Value ?) of New Deal wins at US$ 2,260 mn for Q4, registering 6% QoQ growth. 10 Net New deal wins in Q4 of which;
• Services TCV at US$ 2,216 mn enabled by 6 net new large Services deal wins;
• Products TCV at US$ 54 mn enabled by 4 net new large Product deal wins; Significant number of small deals.

  • Growth momentum led by Telecom, Media, Publishing & Entertainment (20.2%), Lifesciences & Healthcare (18.5%), Manufacturing (16.6%), Technology & Services (14.3%), and Financial Services (10.2%).
  • Geography growth powered by Europe (13.6%), Americas (13.0%) and ROW (15.0%).
  • During Q4, Services business has grown at 5.0% QoQ cc (17.5% YoY), with a CQGR of 5.2% for 3 consecutive quarters
  • i) Engineering and R&D Services grew at robust 3.9% QoQ (23.7% YoY) driven by traction in digital engineering and IoT Works.
  • ii) IT and Business Services grew at healthy 5.2% QoQ cc (16.2% YoY), driven by acceleration in cloud transformation and application and data modernization.
  • Gross Cash stands at US$ 2,914 mn and Net Cash at US$ 2,388 mn at the end of March 31st, 2022
  • HCL Technologies signed a definitive agreement to acquire Starschema, a leading provider of data engineering services, based in Budapest, Hungary. The acquisition was completed effective April 2, 2022. The strategic acquisition bolsters HCL’s capability in digital engineering — driven by data engineering — and increases its presence in Central and Eastern Europe.
  • HCL has seen strong momentum from Actian (where HCL Technologies took a 100 percent stake last quarter), with its Avalanche Cloud Data Platform realizing customer growth of 750 percent YoY in Q4 FY’22.

The stock last hit in BSE,

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