HCLTech Reports Strong Q1 Results, Raises Revenue Forecast
HCL Technologies Limited (HCLTech) announced Q1 financial results with consolidated revenue of ₹30,349.00 crores, up 8.2% YoY. EBIT stood at ₹4,942.00 crores (16.3% of revenue), increasing 3.1% YoY. Net Income was ₹3,843.00 crores. Services segment showed 4.5% YoY growth in constant currency. Digital revenue grew 15.2% YoY, contributing 41.6% of Services revenue. New deal wins totaled $1,812.00 million TCV. The company raised its revenue growth forecast to 3.0-5.0% YoY in constant currency for FY2024. An interim dividend of ₹12.00 per share was declared.

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HCL Technologies Limited (HCLTech), a leading global technology company, has announced its financial results for the first quarter, showcasing robust performance and an optimistic outlook for the future.
Revenue Growth
HCLTech reported a consolidated revenue of ₹30,349.00 crores for Q1, marking a year-on-year growth of 8.2% in INR terms. In constant currency, the company achieved a 3.7% year-on-year growth. The Services segment, which includes IT and Business Services and Engineering and R&D services, demonstrated particularly strong performance with a 4.5% year-on-year growth in constant currency.
Profitability
The company's EBIT (Earnings Before Interest and Taxes) for the quarter stood at ₹4,942.00 crores, representing 16.3% of revenue. While this shows a 9.2% decrease quarter-on-quarter, it reflects a 3.1% increase year-on-year. Net Income for Q1 was ₹3,843.00 crores, accounting for 12.7% of revenue.
Segment Performance
HCLTech's IT and Business Services segment generated revenue of ₹22,454.00 crores, growing 3.0% year-on-year in constant currency. The Engineering and R&D services segment showed impressive growth of 11.8% year-on-year, with revenue reaching ₹5,174.00 crores. The HCL Software segment reported revenue of ₹2,721.00 crores.
Digital Business and AI Initiatives
The company's digital business continues to thrive, with digital revenue growing 15.2% year-on-year in constant currency and contributing 41.6% of the Services revenue. HCLTech is also making significant strides in artificial intelligence, with its AI propositions resonating well with clients. The company has further augmented its AI capabilities through a partnership with OpenAI.
Client Acquisition and Bookings
HCLTech secured new deal wins with a Total Contract Value (TCV) of $1,812.00 million during the quarter. The company added 8 new clients in the $1 million+ category, bringing the total to 956.
Dividend Declaration
The Board of Directors has declared an interim dividend of ₹12.00 per share, marking the 90th consecutive quarter of dividend payout.
Outlook and Guidance
Based on the strong Q1 performance and positive market outlook, HCLTech has raised its revenue forecast. The company now expects its revenue growth to be between 3.0% to 5.0% year-on-year in constant currency for both overall company revenue and Services revenue. The EBIT margin is projected to be between 17.0% and 18.0%.
C Vijayakumar, CEO & Managing Director of HCLTech, commented on the results, stating, "We had healthy revenue growth of 3.7% YoY supported by good performance in our Services business with 4.5% YoY growth in constant currency. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with OpenAI. Our pipeline continues to grow as the demand environment was stable during the quarter."
With its strong financial performance, focus on digital and AI-led solutions, and an optimistic outlook, HCLTech appears well-positioned for continued growth in the evolving technology landscape.
Metric | Q1 Amount | YoY Growth |
---|---|---|
Revenue | ₹30,349.00 crores | 8.2% |
EBIT | ₹4,942.00 crores | 3.1% |
Net Income | ₹3,843.00 crores | -9.7% |
Digital Revenue Growth | - | 15.2% |
New Deal TCV | $1,812.00 million | - |
Historical Stock Returns for HCL Technologies
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-1.13% | -5.30% | -5.99% | -10.68% | +3.20% | +173.92% |