HCL Technologies Q2 Results FY2023, Revenue up by 19.5%

On 13th October 2022, HCL Technologies announced its quarterly results for the second quarter of FY2023.

Q2FY23 Performance updates:

- Revenue from operations stood at Rs. 24686 crores for Q2FY23, with a growth of 19.5% YoY
- Total income was reported at Rs. 24922 crores, with a growth of 19.27% YoY
- Profit before tax stood at Rs. 4584 crores, with a growth of 11.77% YoY
- Profit after tax stood at Rs. 3487 crores, with a growth of 6.86% YoY.

HCL Technologies Q2 Results FY2023 Video:

Segment Highlights:

- IT and Business services revenue stood at Rs. 18172 crores with a growth of 21.11% YoY
- Engineering and R&D services revenue stood at Rs. 4199 crores with a growth of 29.51% YoY
- Product and Platforms segment reported a revenue at Rs. 2436 crores with a drop of 3.02% YoY

Geographical Highlights:

- The American market reported a revenue mix of 64.8% in Q2FY23.
-The European market reported a revenue mix at 27.5%
- The other markets posted a revenue mix at 7.7%

Across Verticals:

- The revenue mix from the Financial services vertical stood at 20.6%
- For the Manufacturing segment vertical, the revenue mix was reported at 19.2%
- Technology & Services revenue mix stood at 15.1% 
- Retail & CPG revenue mix was at 9.2% in Q2FY23
- Telecommunications, Media, Publishing and Entertainment’s revenue mix for Q2FY23 was at 9.2%
- Lifesciences and Healthcare vertical’s revenue mix stood at 16.5%
- Public services’ revenue mix stood at 10.2% for Q2FY23.

Other Highlights:

- The company won 11 Large deals - 8 in Services & 3 in Products
- Total Contract Value Bookings (New Deal wins) stood at US$ 2,384 Million, up by 16.0% QoQ, and by 6.0% YoY and Annual Contract Value is up by 10.3% QoQ & up 23.5% YoY
- Net addition of 8,359 during the quarter, with a closing headcount of 219,325 workforces.
- LTM attrition at 23.8% (voluntary) in IT Services

FY2023 Outlook:

- Services Revenue is expected to grow 16%–17% YoY in Constant Currency
- Revenue guidance increased to 13.5%–14.5% YoY in Constant Currency
- EBIT margin guidance is revised to 18%–19%

Commenting on the results, C Vijaykumar, CEO and Managing Director of HCL Technologies said: “HCLTech has delivered yet another solid performance this quarter with revenue growing at 3.8% QoQ and 15.8% YoY in constant currency and EBIT at 18% up 93 bps QoQ. Our services business grew 5.3% QoQ and 18.9% YoY in constant currency, led by strong demand for Cloud, Engineering and Digital services. This is a validation of the strategic choices we made and the effectiveness of our operational framework. Our bookings and pipeline continue to be very strong, that augurs well for our future growth. These reflect our constant and continuing efforts to supercharge outcomes for all our stakeholders. Our new brand positioning of Supercharging Progress™ has been well received and I am confident will help us deliver on our strategic priorities.”
 

Shares of HCL Technologies on Wednesday rose 1.39 percent, or Rs. 13.05, to close at Rs 951.65 apiece on the BSE.