HCL Tech Q1 net profit up 31.7% at Rs 2,925 crore

HCL has declared an interim dividend of Rs 2 per equity share of Rs 2 each of the company for the FY 2020-21.

New Delhi: IT firm HCL Technologies on Friday posted 31.7 per cent rise in consolidated net profit at Rs 2,925 crore for the June 2020 quarter.

The IT major had registered a net profit of Rs 2,220 crore in the April-June 2019 quarter (as per US GAAP), HCL Technologies said in a regulatory filing.

Its revenue grew 8.6 per cent to Rs 17,841 crore in the quarter under review, from Rs 16,425 crore in the corresponding quarter last year. On a sequential basis, the topline was lower by 4 per cent from Rs 18,590 crore in the March quarter.

HCL said that the Board of Directors has declared an Interim Dividend of Rs 2 per equity share of Rs 2 each of the Company for the Financial Year 2020-21. The Record date of July 25, 2020 fixed for the payment of the aforesaid interim dividend has been confirmed by the Board of Directors. The Payment date of the said interim dividend shall be August 7, 2020.

"The adverse conditions during this quarter had an anticipated negative impact on our revenue. I am happy to report that the resilience of our operating model helped us deliver stellar operating margins and cashflows," HCL Technologies President and CEO C Vijayakumar said.

He added that the company had healthy bookings, enabled by 11 new transformational deal wins.

"We also renewed several large deals during the quarter... We are seeing a robust demand environment and a strong pipeline which gives us confidence in our growth trajectory going forward," he said.

HCL Technologies expects its revenue to increase quarter-on-quarter by an average of 1.5-2.5 per cent in constant currency for the next three quarters, it added.

At the end of June 2020 quarter, HCL had 150,287 employees with a gross addition of 7,005 people. Its attrition for IT services (on last 12 month basis) was at 14.6 per cent.