HCLTech on Friday announced its fourth quarter results for the fiscal year 2024, showcasing modest growth. The company’s revenue saw a slight increase, reaching Rs 28,499 crore, which represents a growth of 0.2 per cent over the previous quarter and a 7.1 per cent year-over-year (YoY).
Despite these modest gains, HCLTech maintained a stable net income, reporting Rs 3,986 crore, a minimal YoY increase of 0.1 per cent but experiencing a quarter-over-quarter (QoQ) decline of 8.4 per cent. This net income constituted 14 per cent of the total revenue.
The financial performance of HCLTech was significantly supported by its Services sector, especially in Telecommunications, Media, Publishing, and Entertainment, which exhibited impressive growth rates of 21.6 per cent QoQ and 39.2 per cent YoY. This sector’s growth shows the strong demand for digital transformation services within these industries.
Despite the revenue and net income figures, the company faced challenges in profitability metrics this quarter. Earnings Before Interest and Taxes (EBIT) stood at Rs 5,018 crore, down by 10.6 per cent from the previous quarter, though it was up by 3.8 per cent from the same period last year, indicating some variability in profit margins.
HCLTech’s cash flow metrics highlight its robust financial management and operational efficiency. The Operating Cash Flow (OCF) reached USD 2,711 Million and the Free Cash Flow (FCF) climbed to USD 2,584 million, both showing significant increases YoY and stressing the company’s strong cash generation capabilities.
HCLTech company reported the acquisition of 21 new large deals and the addition of 2,725 new employees, including 3,096 freshers, preparing HCLTech for future growth opportunities in a dynamic market landscape.
C Vijayakumar, CEO & Managing Director of HCLTech, remained optimistic about the company’s future, particularly its strategic initiatives around artificial intelligence and a global delivery model, which are expected to drive growth as global technology expenditure increases.
“As we look ahead, global enterprise technology spend will only grow with adoption of AI. We are well positioned to capitalise with our AI led propositions, Global delivery model and ideal mix of technology services and products,” Vijayakumar said in a statement.
The company declared a dividend of Rs 18 per share.
_20240701175159_original_image_19.webp)