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Business Standard
15-07-2025
- Business
- Business Standard
HCL Tech slides as Q1 PAT falls 11% QoQ to Rs 3,843 cr
HCL Technologies declined 3.08% to Rs 1,570.05 after the company reported a 10.77% drop in net profit to Rs 3,843 crore for the quarter ended 30 June 2025 (Q1 FY26), compared to Rs 4,307 crore in the previous quarter (Q4 FY25). Revenue from operations increased slightly to Rs 30,349 crore in Q1 FY26, up from Rs 30,246 crore in Q4 FY25. In dollar terms, the company's revenue stood at $3,545 million, up 1.34% QoQ. However, in constant currency (CC) terms, revenue declined 0.8% sequentially. Earnings before interest and tax (EBIT) for Q1 FY26 fell 9.18% to Rs 4,942 crore, compared to Rs 5,442 crore in Q4 FY25. On a year-on-year (YoY) basis, the companys net profit dropped 9.72%, while revenue grew 8.16%. The company reported a Return on Invested Capital (ROIC) of 38.1%, up 353 basis points (bps) YoY. Its services segment recorded ROIC of 45.2%, up 236 bps YoY. On a last-twelve-months (LTM) basis, Operational Cash Flow (OCF) stood at $2,571 million, while Free Cash Flow (FCF) came in at $2,421 million. HCLTechs total contract value (TCV) of new deal wins for Q1 FY26 stood at $1,812 million. The companys Board of Directors declared an interim dividend of Rs 12 per equity share for FY 202526. The record date for the dividend is 18 July 2025, and the payment date is set for 28 July 2025. HCLTech added 269 net employees during the quarter, bringing its total headcount to 223,151 as of 30 June 2025. This includes the addition of 1,984 freshers. The companys LTM attrition rate remained stable at 12.8%, unchanged from the same period last year. For FY26, HCLTech has provided guidance indicating that overall company revenue is expected to grow between 3.0% and 5.0% year-on-year in constant currency (CC) terms. The Services segment is also projected to register a similar 3.0% to 5.0% YoY growth in CC. Additionally, the company expects its EBIT margin to range between 17.0% and 18.0% for the fiscal year. C Vijayakumar, CEO & managing director of HCLTech, said, 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 operating margin came at 16.3%, impacted by lower utilization and additional Gen AI and GTM investments. 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. As the only service provider positioned as Customer's Choice in all 6 Gartner Voice of Customer Quadrant evaluations related to IT services, we are well positioned to grow in the AI era. Roshni Nadar Malhotra, Chairperson of HCLTech, said, "AI has become integral to the business growth of global enterprises. HCLTechs capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive, and significant value creators to our clients. We also remain intensely focused on the ethical deployment of AI and maximizing its positive social impact. HCLTech is a global technology company with more than 223,000 employees across 60 countries. It delivers industry-leading capabilities in digital, engineering, cloud, and AI, powered by a broad portfolio of technology services and products. HCLTech works with clients across all major industries, providing tailored solutions for financial services, manufacturing, life sciences and healthcare, high tech, semiconductors, telecom and media, retail and consumer packaged goods (CPG), and public services. For the 12-month period ending June 2025, the company reported consolidated revenues of $14.0 billion.
Economic Times
15-07-2025
- Business
- Economic Times
HCLTech shares in focus after Q1 profit drops 10% YoY to Rs 3,843 crore
HCL Technologies shares will be in focus on Tuesday after the company reported a 10% year-on-year (YoY) decline in consolidated net profit for Q1FY26 at Rs 3,843 crore, compared with Rs 4,257 crore in the same quarter last year. The figure came in below Street estimates of Rs 4,224 crore. ADVERTISEMENT The company declared an interim dividend of Rs 12 per share for FY26. The record date for the dividend is July 18, 2025, and the payment will be made on July 28, 2025. Revenue from operations rose 8% YoY to Rs 30,349 crore, compared with Rs 28,057 crore in Q1FY25. The figure was marginally above Street estimates of Rs 30,340 crore. Sequentially, revenue was up 0.3% from Rs 30,246 crore in Q4FY25. The company revenue growth is expected to be between 3% - 5% YoY in CC while the services revenue growth is also expected to be between 3% - 5% YoY in CC. The EBIT margin is seen between 17% and 18%.Commenting on the Q1 earnings, Roshni Nadar Malhotra, Chairperson of HCL Technologies said that the company remains "intensely focused" on the ethical deployment of AI and maximizing its positive social impact. "AI has become integral to the business growth of global enterprises. HCL Tech's capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive and significant value creators to our clients," she said. ADVERTISEMENT '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 operating margin came at 16.3%, impacted by lower utilization and additional Gen AI and GTM investments. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with Open AI. Our pipeline continues to grow as the demand environment was stable during the quarter. As the only service provider positioned as 'Customer's Choice'' in all 6 Gartner Voice of Customer Quadrant evaluations related to IT services, we are well positioned to grow in the AI era,' C Vijayakumar CEO & Managing Director of HCL Tech said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
15-07-2025
- Business
- Time of India
HCLTech shares in focus after Q1 profit drops 10% YoY to Rs 3,843 crore
HCL Technologies shares will be in focus on Tuesday after the company reported a 10% year-on-year (YoY) decline in consolidated net profit for Q1FY26 at Rs 3,843 crore, compared with Rs 4,257 crore in the same quarter last year. The figure came in below Street estimates of Rs 4,224 crore. The company declared an interim dividend of Rs 12 per share for FY26. The record date for the dividend is July 18, 2025, and the payment will be made on July 28, 2025. Revenue from operations rose 8% YoY to Rs 30,349 crore, compared with Rs 28,057 crore in Q1FY25. The figure was marginally above Street estimates of Rs 30,340 crore. Sequentially, revenue was up 0.3% from Rs 30,246 crore in Q4FY25. FY26 Guidance The company revenue growth is expected to be between 3% - 5% YoY in CC while the services revenue growth is also expected to be between 3% - 5% YoY in CC. The EBIT margin is seen between 17% and 18%. Live Events Management commentary Commenting on the Q1 earnings, Roshni Nadar Malhotra, Chairperson of HCL Technologies said that the company remains "intensely focused" on the ethical deployment of AI and maximizing its positive social impact. "AI has become integral to the business growth of global enterprises. HCL Tech's capabilities and strategic partnerships ensure our AI-led solutions are practical, comprehensive and significant value creators to our clients," she said. '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 operating margin came at 16.3%, impacted by lower utilization and additional Gen AI and GTM investments. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with Open AI. Our pipeline continues to grow as the demand environment was stable during the quarter. As the only service provider positioned as 'Customer's Choice'' in all 6 Gartner Voice of Customer Quadrant evaluations related to IT services, we are well positioned to grow in the AI era,' C Vijayakumar CEO & Managing Director of HCL Tech said. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
14-07-2025
- Business
- Business Standard
HCLTech Q1 results: Net profit down 9.7% at ₹3,843 cr, dividend declared
HCLTech on Monday reported a decline in net profit to ₹3,843 crore for the quarter ended June 2025 (Q1 FY26), down 9.7 per cent year-on-year (Y-O-Y) from ₹4,257 crore in the same period last year. Sequentially, profit also fell by 10.7 per cent compared to ₹4,307 crore in the March quarter (Q4 FY25), according to a BSE filing by the company. The company's revenue grew 8.1 per cent Y-O-Y to ₹30,349 crore in Q1 FY26, up from ₹28,057 crore in Q1 FY25. On a sequential basis, revenue remained nearly stable, with a slight increase from ₹30,246 crore recorded in the previous quarter. HCLTech expense Expenses for the quarter increased sharply to ₹25,407 crore, up 9.2 per cent Y-O-Y from ₹23,262 crore in Q1 FY25 and 2.4 per cent sequentially from ₹24,804 crore in Q4 FY25. The rise in expenses impacted profitability despite the steady revenue growth. HCLTech dividend declared The board of directors also approved an interim dividend of ₹12 per share. HCLTech guidance The company guided for a revenue growth of 3-5 per cent YoY (in CC). It expects services revenue growth to be between 3-5 per cent YoY and EBIT margin to be between 17-18 per cent. 'We had healthy revenue growth of 3.7 per cent Y-o-Y supported by good performance in our Services business with 4.5 per cent Y-o-Y growth in constant currency. Our operating margin came at 16.3 per cent, impacted by lower utilisation and additional Gen AI and GTM investments. Our AI propositions are resonating well with our clients and have been augmented further by our partnership with Open AI. Our pipeline continues to grow as the demand environment was stable during the quarter. As the only service provider positioned as 'Customer's Choice'' in all 6 Gartner Voice of Customer Quadrant evaluations related to IT services, we are well positioned to grow in the AI era," C Vijayakumar, Chief Executive Officer & Managing Director of HCLTech, said.
