HCL Tech Q1 results: Profit jumps 32% YoY to Rs 2,925 crore; Shiv Nadar to step down as Chairman

HCL Technologies on Friday posted a 31.70 per cent year-on-year (YoY) rise in net profit at Rs 2,925 crore for the quarter ended June 30. It had posted a net profit of Rs 2,220 crore in the corresponding quarter last year.

Consolidated revenue of the company increased 8.60 per cent YoY to Rs 17,841 crore in Q1FY21.

EBITDA jumped 34.30 per cent YoY to Rs 4,566 crore during April-June period against Rs 3,401 crore in the same period last year.


The IT major expects topline to increase by an average of 1.5-2.5 per cent QoQ in constant currency for the next three quarters, while operating margin is likely to grow between 19.5-20.5 per cent for FY21.

The board has appointed Roshni Nadar Malhotra, non-executive director as the chairperson of the board of directors with effect from July 17, in place of Shiv Nadar who expressed his desire to step down from the position of the chairman, HCL Technologies said.

Shiv Nadar would continue to be the managing director of the company with the designation as the Chief Strategy Officer of the company.

Nadar said, “We are living in unprecedented times where organisations and people across geographies are dealing with challenges related to the pandemic. However, this has also pushed businesses to accept the pandemic as a catalyst for change and look at building agility and resilience into every level of their organization. HCL, along with its partners, is helping customers embrace digital transformation and innovation to emerge stronger in this new normal. I am confident that, with decisive action leveraging digital momentum and sustainable business practices, we will together emerge as stronger entities.”

The company also announced a dividend of Rs 2 per share.

C Vijayakumar, President & CEO, HCL Technologies said, “The adverse conditions during this quarter had an anticipated negative impact on our revenue.” HCL Tech posted 7.30 per cent fall in net profit on quarter-on-quarter (QoQ) basis on 4 per cent QoQ decline in revenue.

In Q1 FY21, HCL also signed 11 new deals, led by key industry verticals including telecommunication, financial services, manufacturing, life sciences and healthcare.

Total headcounts increased to 1,50,287 as of June 30, 2020 against 1,43,900 in the same period last year. IT Services attrition declined to 14.6 per cent, down 270 bps on YoY basis.

Shares of the company traded 1.04 per cent higher at Rs 634.20 in the early trade, while the benchmark BSE Sensex was up 0.50 per cent at 36,649 at around 10 am (IST).