HCL Technologies Q2 FY25 Results: Revenue Growth and Strong Profitability
HCL Technologies Q2 FY25 Results Summary
Q2 FY25 of HCL Technologies, have come in strong on revenue and profitability, driven by positive demand trends in digital transformation and AI/analytics solutions.
Financial Developments
- Revenue: Consolidated revenues for HCL Technologies reached ₹28,862 crores. The 8.2% YoY and 2.9% QoQ growth was supported by increased digital and cloud transformation across sectors.
- Net Income: The net profit was ₹4,235 crores, a 10.5% increase YoY from ₹3,832 crores in Q2 FY24.
- EBIT: ₹5,362 crores, reflecting 11.8% YoY growth with an EBIT margin of 18.6%, marking a sequential improvement of 149 basis points.
Business Segments
- Digital Services: 7.8% YoY growth, significantly contributing to overall revenue.
- Software Business: Recorded 9.4% YoY growth, underscoring its impact on the digital economy.
- Engineering and R&D Services: Achieved 4.3% YoY growth, showcasing high demand for engineering solutions.
Geographic Performance
- Americas: Highest regional growth with 7.5% YoY increase.
- Europe: Grew at 4.2% YoY.
- Industry Highlight: The Telecommunications, Media, Publishing & Entertainment sector led vertical growth with a substantial 61.2% YoY increase.
Total Contract Value (TCV) and New Deals
HCL Technologies signed new contracts totaling $2.2 billion this quarter, marking strong deal momentum across various verticals. Notable deals included one with a Fortune 200 biopharma firm for SAP managed services and another deploying AI-driven customer segmentation for the automobile sector.
Workforce Actions
By the end of Q2 FY25, HCL Technologies’ workforce count stood at 218,621, with 2,932 net freshers added. The attrition rate decreased to 12.9% from 14.2% last year, reflecting improved employee retention efforts.
Guidance for the Future
HCL Technologies has revised its constant currency revenue growth guidance for FY25 to 3.5%-5%, while maintaining an EBIT margin guidance of 18%-19%. CEO C Vijayakumar noted a strong pipeline in Data & AI and Digital Engineering, positioning the company for future growth and innovation.
Dividend Announcement
In commitment to shareholder returns, HCL Technologies declared an interim dividend of ₹12 per share for the 87th consecutive quarter, reinforcing its strong financial performance.
Summary
HCL Technologies Q2 FY25 results demonstrate strong performance amidst IT sector challenges, with continued investment in digital transformation and AI capabilities poised to drive sustained growth and shareholder value in future quarters.
