IT major HCL Technologies’ revenue surpassed industry’s expectations for the third quarter, backed by the increased demand for digital services as businesses moved on online space during the pandemic.
Company’s net profit jumped 31.1 per cent at Rs 3,982 crore for the December quarter as compared to Rs 3,037 crore in the October-December 2019 quarter.
Revenue for the software services provider increased grew 6.4 per cent to Rs 19,302 crore in the quarter under review. It was at Rs 18,135 crore in the corresponding quarter last year.
On a sequential basis, net profit was 26.7 per cent higher from Rs 3,142 crore, while topline was higher by 3.8 per cent from Rs 18,594 crore in September 2020 quarter.
In the third quarter, HCL Technologies recorded revenue growth at 3.5 per cent quarter-on-quarter in constant currency – higher than its estimate of 1.5-2.5 per cent sequential rise.
The company has now revised its sequential revenue growth guidance to 2-3 per cent in the fourth quarter.
Previously, the company had given a guidance of an average of 1.5-2.5 per cent increase quarter-on-quarter in constant currency for the third and fourth quarter.
“We posted a strong financial performance in Q3 FY’21 with a constant currency revenue growth of 3.5 per cent sequentially and 1.1 per cent year-on-year and an EBIT of 22.9 per cent. This solid performance was driven by robust momentum in our Mode 2 and Mode 3 businesses led by Digital, Cloud and Products & Platform segments,” HCL Technologies President and CEO C Vijayakumar said.
The results reflect the success of the strategic investments the company has made over the years including unique ecosystem constructs with all Cloud Hyperscalers, organic and inorganic investments in a broad-based IP and Platforms portfolio and an enterprise digital transformation value proposition that is truly integrated and differentiated.
The Board of Directors has declared an interim dividend of Rs 4 per equity share for the financial year 2020-21.
Compony’s revenue has crossed $10 billion milestones in CY20, delivering 3.6 per cent year-on-year growth in constant currency.