HCL Tech to pay Rs 12/share interim dividend; sets record date

MUMBAI - HCL Tech Ltd board has recommended an interim dividend payout of Rs 12/share.

The dividend payout was considered and recommended along with the earnings for the December quarter.

The company has fixed January 20 as the record date to determine eligible shareholders for

the dividend payout.

The country’s third-largest IT service provider on Friday reported a good set of numbers as the consolidated net profit rose 13.5% sequentially to Rs 4,350 crore. Consolidated revenue rose nearly 7% to Rs 28,446 crore.

Both the bottomline and topline were better than analysts’ expectations.

However, HCL Tech trimmed its guidance for the current financial year. The company now sees constant currency revenue to grow 5.0-5.5% in FY24, compared to 5-6% guided earlier.

It has retained operating margin guidance at 18-19% for the full year. In constant currency terms, HCL Tech’s revenue grew 6% sequentially in the quarter.

Financial services revenue saw a decline of 1.3% in constant currency terms, while manufacturing rose 7.6%.

The services segment's constant currency revenue growth came in at 4% year-on-year (YoY), led by growth in telecommunications, media, publishing, and entertainment. The services revenue crossed the annual run rate of $12 billion.

HCL Tech bagged deals worth $1.9 billion in the December quarter, with 6 large deals in the services business, and 12 in software.

The software major is confident of sustaining the growth momentum, led by a good business mix.

Ahead of the earnings, HCL Tech shares ended nearly 4% higher on the National Stock Exchange at Rs 1,540.80. Intraday, the stock hit a lifetime high of Rs 1,555.