HCL Tech Quarterly Earnings and Results Today: HCL Tech on Monday announced its fiscal third quarter earnings with profit at Rs 4,591 crore, posting a growth of 5.54 per cent in comparison to Rs 4,350 crore recorded during the same quarter of previous financial year. It posted revenue from operations for the period at Rs 29,890 crore. This was 5.08 per cent higher than Rs 28,446 crore posted during the third quarter of FY24.
The company board also announced its fourth interim dividend of Rs 18 per equity share of Rs 2 each of the company for the financial year 2024-25. This included a special dividend of Rs 6 per share to celebrate 25 years of the company’s public listing.
HCL Tech had, in a regulatory filing on January 8, said, “The Company will announce the Third Quarter FY 2025 Results, ended December 31, 2024, on Monday, January 13, 2025, post-closing of Indian stock markets. Following the results announcement, senior management of HCL Technologies will conduct audio conference call at 7:30 p.m. (IST) for 60 minutes to discuss the results followed by the detailed question-answer session.”
HCL Tech Results: Check Here Live Coverage on HCL Technologies (HCL Tech) Q3 Earnings and Results
HCL Tech Q3 Results Live Updates: Company CFO on Q3 results
Shiv Walia, Chief Financial Officer, HCLTech, said, “HCLTech delivered yet another strong quarter with INR revenue of Rs 29,890 crore (up 3.6% QoQ and 5.1% YoY). Our razor-sharp focus on achieving topline growth with healthy margins is reflected in our highest ever EBIT of Rs 5,821 crore and Net Profit of Rs 4,591 crore this quarter. Q3 EBIT margins came in at 19.5% (up 93 bps QoQ). LTM Return on Invested Capital (ROIC) continues its growth trajectory and stands at 36.6% for the company (up 385 bps YoY), and at 44.7% for Services (up 455 bps YoY). Cash conversion (on LTM basis) continues to outpace our 5-year FCF/NI average of 126% with FCF/NI of 134% this quarter. This has further strengthened our Balance Sheet, helping us end the quarter with our highest ever cash balance of Rs 27,707 crore.”
HCL Tech Q3 Results Live Updates: C Vijayakumar on Q3 results
C Vijayakumar, CEO & Managing Director, HCL Tech, said, “HCLTech delivers another quarter of solid growth at 3.8% QoQ in constant currency and EBIT at 19.5%. I am pleased that this growth is powered by broad based performance across business lines as our clients across verticals and geos reaffirm their confidence in our Digital and AI offerings. Our new deal bookings were healthy during the quarter at $2.1B with wins across services and software. We are positioning ourselves for a future that is transformative, with AI empowering businesses and employees. We continue to see growing demand for our AI led propositions across services and software offerings.”
HCL Tech Q3 Results Live Updates: Mirae Asset Sharekhan on HCL Tech Q3 performance
Shaji Nair, Research Analyst, Capital Market Strategy, Mirae Asset Sharekhan, said, “HCLTech reported decent revenue growth of 3.8% q-o-q in cc but missed our estimates of 4.8% q-o-q in cc with largely broad performance across geos and verticals. EBIT margin rose to 19.5%, up ~90 bps q-o-q , beating our estimates of 19.3%. Deal win momentum was healthy with new Deal TCV at $2095 million, down 6% q-o-q / up 9% y-o-y. The company raised the lower end of the guidance for FY25 to 4.5-5% from 3.5-5% while keeping margin guidance unchanged. While the performance is healthy, the commentary on discretionary spend would be the key monitorable. The Q3 performance and revised guidance reflects that the company is on track to deliver industry leading growth among Tier 1 IT companies for FY25. We have Buy rating on the stock.”
HCL Tech Q3 Results Live Updates: Gartner on HCL Tech Q3 performance
Biswajit Maity, Sr Principal Analyst, Gartner, said, “HCLTech posted a 5.1% YoY revenue growth, driven by strong order bookings and major deals, despite economic challenges. The company’s focus on technology consulting and expanding into the SMB segment has supported steady growth. North America is expected to lead growth in 2025, followed by Europe and ROW. While late 2024 saw cautious spending and delays, 2025 looks promising with rising IT investments in India (10-12%), global growth (6-8%), and Generative AI projects moving into production. The sectors anticipated to see the highest growth are financial services, banking, retail, manufacturing, and technology. To sustain growth, HCLTech must improve service delivery, meet service level expectations and ensuring continuous improvement.”
HCL Tech Q3 Results Live Updates: FY25 Guidance
• Company Revenue growth expected to be between 4.5% - 5.0% YoY in CC
• Services Revenue growth expected to be between 4.5% - 5.0% YoY in CC
• EBIT margin to be between 18.0% – 19.0%
HCL Tech Q3 Results Live Updates: New deal wins
HCL Tech reported TCV (New Deal wins) at $2,095 million.
HCL Tech Q3 Results Live Updates: Roshni Nadar Malhotra on Q3 results
HCL Tech Q3 Results Live Updates: Attrition rate at 13.2%
HCL Tech reported a marginal increase in attrition rate to 13.2 per cent for the fiscal third quarter as against 12.8 per cent in the same quarter last year. During Q3, HCL Tech witnessed a net addition of 2,134 employees and in the same quarter last year, it had 3,617 employees. The company also added 2,014 freshers during the quarter in review. The total headcount at the end of December 2024 stood at 220,755.
HCL Tech Q3 Results Live Updates: Fourth interim dividend announced
HCL Tech board on Monday announced its fourth interim dividend of Rs 18 per equity share of Rs 2 each of the company for the financial year 2024-25. This included a special dividend of Rs 6 per share to celebrate 25 years of the company’s public listing. In a regulatory filing, the company said, “The Record date for the payment of the aforesaid interim dividend shall be January 17, 2025 and the payment date of the said interim dividend shall be January 24, 2025.”
Q3 Results Live Updates: HCL Tech Q3 profit jumps 5.5% to Rs 4,591 crore; Rs 18 dividend declared
HCL Technologies (HCLTech) reported a 5.5% year-on-year increase in net profit, reaching Rs 4,591 crore for the quarter ending December 31, 2024, meeting market expectations. The company also declared an interim dividend of Rs 18 per share. Revenue for the third quarter of FY25 grew by 5% to Rs 29,890 crore, compared to Rs 28,446 crore in the same period last year. According to a Moneycontrol survey of nine brokerages, HCL Tech was expected to report a revenue of Rs 30,135 crore and a consolidated net profit of Rs 4,596 crore for Q3 FY25. Despite the positive earnings, HCL Tech’s share price dropped by over 1%, closing at Rs 1,975 on the NSE after remaining flat for most of the trading session.
Q3 Results Live Updates: Elara Capital on IT sector
A report by Elara Capital stated, “For TCS, we expect USD revenue to decline 0.8% QoQ, hit by furloughs and ebbing revenue from the BSNL deal. For INFOSYS, the ask rate to reach lower/upper range of FY25 revenue guidance is (0.7%)/+0.25%, per our calculation in CC. Expect a CC / USD drop of 0.3%/1% QoQ, led by furloughs. For WPRO, Q3 revenue growth guidance was within -2-0% in CC. Expect revenue to decline 0.9% (median of the guidance) in CC and USD revenue to drop to 1.5% due to cross-currency headwinds. WPRO faced client-specific issues, which hit growth in BFS and Healthcare verticals. This may continue in Q3, which along with furloughs may drag down growth. For TechM, growth tailwinds are seasonally strong Comviva business but continued weakness in the Telecom vertical may drag down overall revenues. We build in a revenue drop of 0.5% in USD terms in Q3E.”
HCL Tech Q3 Results Live Updates: FY25 guidance
ICICI Securities said that HCL Tech will likely maintain its FY25 revenue growth guidance of 3.5– 5 per cent.
HCL Tech Q3 Results Live Updates: IT sector to post soft Q3 revenue growth due to furloughs, says ICICI Securities
IT companies are seeing an uptick in client conversations with uncertainties ebbing post the US Presidential elections and the Federal Reserve (Fed) continuing its interest rate cut cycle. ICICI Securities said, “Growing deal pipelines, improved pace of deal closures and continuation of recovery in BFSI, as indicated by a few companies in our coverage universe, are testament to the backdrop. This is in line with our expectation of ascending IT spending from CY25. However, we expect Q3FY25 revenue growth to be soft due to furloughs (at normal levels, unlike last year noting heightened furloughs) and fewer working days.”
HCL Tech Q3 Results Live Updates: HCL Tech Q3 projections
According to a CNBC TV18 poll, HCL Tech is expected to post revenue for the fiscal third quarter at Rs 30,030 crore and profit for the period is estimated at Rs 4625 crore. The company is projected to report EBIT at Rs 5846 crore.
HCL Tech Q3 Results Live Updates: Nuvama on HCL Tech
A Nuvama report stated that HCL Tech is expected to post 3.5 per cent QoQ revenue growth in CC terms led by seasonally strong quarter for software business. “We expect core services to grow ~1.5 per cent QoQ. We expect deal wins to be in $2- 2.5 billion range. We expect +90bp improvement in margin driven by seasonally strong software business,” it said.
HCL Tech Q3 Results Live Updates: Prabhudas Lilladher on HCL Tech
An analysis report by Prabhudas Lilladher stated that HCL Tech is expected to report Q3 revenue at Rs 30,200 crore, posting a growth of 6.2 per cent on-year and 4.6 per cent growth sequentially. PAT, it added, is estimated at Rs 4,500 crore, up 4 per cent YoY. The brokerage expects a 4.6 per cent QoQ constant currency (CC) growth, driven by strong performance in its software business despite furloughs in the IT sector.
HCL Tech Q3 Results Live Updates: Impact from Trump presidency
Shares of IT majors including Infosys, HCL Tech and Wipro got an expected boost with Donald Trump winning the US presidential election. In the coming days, the IT firms will comment on how Trump's presidency might affect their businesses as they are queued up to release their fiscal third quarter results.
HCL Tech Q3 Results Live Updates: HCL Tech to lead growth on seasonal strength in products biz, says ICICI Securities
ICICI Securities maintained that HCL Tech is expected to lead growth among large-caps with 4 per cent QoQ CC led by seasonal strength in the products business. In an analysis report, the brokerage firm said, “We build in 3.3% USD/4% CC QoQ revenue growth. We expect 1.6 per cent QoQ CC growth in Business (IT+ER&D) services segment, within the required CQGR of 0-2 per cent to meet the full-year guidance and 25.7 per cent QoQ CC, 4 per cent YoY CC in Products & Platform given seasonal strength in this business. We expect a one month contribution (~USD 10mn) from HPE CTG acquisition in Q3.”
In terms of deal TCV, ICICI Securities said that the demand environment is largely unchanged and the company expects clarity on demand environment and client budgets to emerge in Feb’25. Per the report, HCL Tech is expected to post Q3 revenue at Rs 30,033.80 crore, posting a growth of 5.6 per cent on-year and profit is estimated at Rs 4472.30 crore, up 2.8 per cent YoY. The company’s EBIT is projected at Rs 5878.50 crore, up 4.7 per cent YoY.
HCL Tech Q3 Results Live Updates: IT sector Q3 growth to be weighed down by seasonal furloughs, says MOFSL
IT sector growth is expected to be weighed down by seasonal furloughs in Q3FY25. That said, looking beyond it, Motilal Oswal Financial Services (MOFSL) said, “Macro uncertainty is gradually easing and we expect the outlook for technology spending to improve in CY25. While the initial phase of recovery in H1FY25 was sluggish, we now see clear signs of an acceleration. Recovery appears to be expanding beyond US BFSI—which continues to strengthen—into additional industry verticals such as Hi-Tech, which is recovering ahead of schedule.”
The brokerage firm also maintained that the most important catalyst for the sector would come after Q3 when client budgets for CY25 would be finalised.
HCL Tech Q3 Results Live Updates: HCL Tech to report highest growth among large-caps, says JM Financial
Brokerage firms maintained that HCLTech's Q3 performance is expected to reflect steady growth despite industry challenges. Per JM Financial, HCL Tech’s growth should be stronger on software sales and CTG contribution. “We have built USD 20 million contribution from one-month consolidation of CTG. We are building 1.5%/1.5%/25% QoQ growth in IT Services/ERS/ Product & Platform business in USD terms. Expect 50 bps EBIT margin expansion aided by higher contribution of Software sales; Wage hike (-75 bps QoQ) will be a key headwind,” JM Financial said.
Per the report, HCL Tech is expected to post Q3 revenue at Rs 30393.50 crore, posting a growth of 6.8 per cent on-year and profit for the quarter is estimated at Rs 4593.50 crore, up 5.6 per cent YoY. The company’s EBIT is projected to be at Rs 5811.00 crore, up 3.5 per cent YoY. Among large-caps, HCL Tech is expected to report the highest growth, JM Financial stated.
HCL Tech Q3 Results Live Updates: Revenue growth for HCL Tech may be supported by seasonally strong P&P biz, says Elara Capital
Per analysts, HCL Tech is expected to post revenue growth driven by strong performance in Software and Products & Platforms. An analysis report by Elara Capital said that revenue growth for HCL Tech may be supported by its seasonally strong Products & Platform (P&P) business. Margins for TCS, HCL Tech, Tech Mahindra, Coforge and Persistent Systems, the brokerage firm said, may improve sequentially, led by cost optimization. Elara Capital further stated, “HCL Tech, which deferred its wage hike from July to September, may witness an impact on IT Services’ margins (we factor in 60 bps impact). The impact is likely to be mitigated by momentum in the P&P business, resulting in a 40bps QoQ improvement at the company level.”
Per the report, HCL Tech is expected to post Q3 revenue at Rs 29,899.70 crore, posting a growth of 5.1 per cent on-year and profit is projected at Rs 4403.10 crore, up 1.2 per cent YoY. The company’s EBIT margin is estimated at 19.0 per cent.
HCL Tech Q3 Results Live Updates: Deal wins during Q2
Earlier in October, HCL Tech had announced that the company’s net new deal wins for the fiscal second quarter stood at $2,218 million, up from $1.96 billion in Q1FY25. C Vijayakumar, CEO & Managing Director, HCL Tech, had said, “Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency led programs. Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term.”
HCL Tech Q3 Results Live Updates: Dividend announcement during Q2
HCL Tech had, during its fiscal second quarter earnings, also announced an interim dividend of Rs 12 per equity share of Rs 2 each of the company for the Financial Year 2024-25.
During the fiscal second quarter, earlier in October, HCL Tech has reported a profit growth of 10.5 per cent YoY at Rs 4,237 crore in comparison to Rs 3,833 crore posted during the corresponding quarter of previous year. It had posted revenue from operations at Rs 28,862 crore, up 8.2 per cent YoY. The IT major had reported revenue growth in Constant Currency (CC) terms by 1.6 per cent sequentially and 6.2 per cent YoY.
HCL Tech Q3 Results Live Updates: Welcome to the live blog!
Greetings! With the fiscal third quarter earnings season already on, we are all set and are keeping a tab on HCL Tech’s numbers to be released today. We, at FinancialExpress.com, will keep you updated and will bring you all the details on Q3 numbers and expectations around the same, while also analysing what it would mean for the IT sector at large.