HCL Technologies, India’s third-largest IT services company, disclosed an 11.14% year-on-year decrease in its financial results for the quarter ending December. The net profit for the quarter dropped to Rs 4,082 crore from Rs 4,594 crore in the same period the previous year. This decline was primarily attributed to a one-time cost of Rs 956 crore related to new labor code provisions implemented during the quarter.
The company’s revenue for the December quarter surged to Rs 33,872 crore, indicating a 6% increase from the previous quarter and a 13.3% rise from a year earlier. In constant currency terms, revenue saw a 4.2% growth quarter-on-quarter and a 4.8% increase year-on-year. HCL Technologies reported a total income of Rs 34,257 crore in Q3, marking a 12.8% rise from Rs 30,367 crore in the corresponding period last year.
Service revenue exhibited consistent growth, with a 1.8% sequential increase and a 5% annual rise in constant currency terms. Notably, the quarter saw significant growth in advanced technologies, with revenue from Advanced AI surging nearly 20% quarter-on-quarter in constant currency terms to $146 million. Operationally, the company recorded earnings before interest and tax (EBIT) of Rs 6,285 crore, an 8% increase compared to the same period in the previous fiscal year.
Operating margins also saw improvement, with the EBIT margin expanding to 18.6% from 17.2% in the September quarter. C Vijayakumar, CEO & Managing Director of HCLTech, expressed confidence in the company’s ability to meet the increasing demand for AI solutions from clients across various industries and service segments.
