Business News | HCLTech Q2 Net Profit Rises over 21% YoY to Rs 5,132 Crore, Revenue Grows 11% to Rs 35,620 Crore
Get latest articles and stories on Business at LatestLY. IT services major HCLTech on Monday reported an 11.5 per cent year-on-year growth in consolidated revenue to Rs 35,620 crore for the September quarter of FY27, while consolidated net profit rose 21.2 per cent to Rs 5,132 crore.
New Delhi [India], October 12 (ANI): IT services major HCL Technologies Ltd on Monday reported an 11.5 per cent year-on-year growth in consolidated revenue to Rs 35,620 crore for the September quarter of FY27, while consolidated net profit rose 21.2 per cent to Rs 5,132 crore.
On a sequential basis, the IT giant’s revenue increased 3 per cent from Rs 34,579 crore in the June quarter, while net income rose 11 per cent from Rs 4,624 crore in the previous quarter.
In constant currency terms, consolidated revenue grew 2.6 per cent year-on-year and 2.3 per cent quarter-on-quarter. Revenue from services increased 4 per cent year-on-year in constant currency terms, supported by growth across key business segments.
Segment-wise, IT and Business Services revenue grew 4.4 per cent year-on-year in constant currency terms, while Engineering and Research and Development (R&D) Services revenue increased 2.1 per cent. HCLSoftware revenue declined 11.2 per cent year-on-year in constant currency terms.
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In terms of operating margins, IT and Business Services reported an EBIT margin of 18.6 per cent, up 229 basis points year-on-year, while Engineering and R&D Services margin fell 231 basis points to 15.2 per cent. HCLSoftware's EBIT margin stood at 20.1 per cent, compared with 26.5 per cent a year earlier.
HCLTech's earnings performance also reflected an improvement in operating profitability. Earnings before interest and tax (EBIT) margin stood at 18.2 per cent in the September quarter, expanding 71 basis points year-on-year and 131 basis points sequentially. The company said the reported margin included an 84-basis-point impact from restructuring costs.
The company's Advanced AI business continued to record strong growth, with revenue reaching USD 219 million, increasing 78 per cent year-on-year and 28.4 per cent quarter-on-quarter in constant currency terms.
Chairperson Roshni Nadar Malhotra said the accelerating growth in Advanced AI revenue validated the company's business strategy, adding that investments across the AI stack and strategic partnerships positioned HCLTech to serve enterprises and governments globally.
Chief Executive Officer and Managing Director C Vijayakumar said the company delivered new deal bookings of USD 3.3 billion during the quarter, up 27 per cent year-on-year, taking first-half bookings to a record high. He added that the company's AI propositions were resonating with clients, supporting confidence in its growth trajectory.
HCLTech retained its FY27 revenue growth guidance at 2.5-4 per cent in constant currency terms. For its services business, the company expects revenue growth of 3-4 per cent in constant currency terms, while its EBIT margin guidance remains at 17.5-18.5 per cent.
The company also reported diluted earnings per share of Rs 70.22 for the quarter, up 12.2 per cent year-on-year, and announced a dividend of Rs 12 per share.
On Monday, shares of HCL Tech ended 0.5 per cent higher at Rs 1,223 on the National Stock Exchange. (ANI)
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