HCL Tech Q4 net up 22.8% yoy at Rs 3,154 crore; announces dividend of Rs 2

Earnings before interest and taxes (EBIT) stood at Rs 3,881 crore while EBIT margin came in at 20.9 per cent.

Shares of HCL Technologies were up 4 per cent to Rs 542 on the BSE on Thursday after the company reported a 3.8 per cent quarter on quarter (q-o-q) growth in its consolidated net profit at Rs 3,154 crore for the quarter ended March 2020 (Q4FY20). On a year-on-year (yoy) basis, the net profit surged 22.8 per cent. 

Revenue for the quarter under review was up 2.5 per cent at Rs 18,590 crore on sequential basis. In constant currency terms, revenue grew 0.8 per cent on q-o-q basis. Earnings before interest and taxes (EBIT) stood at Rs 3,881 crore, up 5.8 per cent over the previous year quarter, while EBIT margin came in at 20.9 per cent for the quarter.

EBIT margin at 19.6 per cent for FY’20 exceeds the guided range of 19.0 per cent to 19.5 per cent. The board of directors recommended a final dividend of Rs 2 per equity share of Rs 2 for the financial year 2019-20 (FY20). 

The management said, FY’20 has been a landmark year, where HCL Technologies witnessed its highest growth in recent years and an industry leading performance for the fourth consecutive year. The compay’s focused Mode 1-2-3 strategy helped deliver an all-round growth across service lines, verticals and geographies and enabled to deliver at the top end of revenue guidance and exceed the top-end of margin guidance for the year, it added.

The company's profit and revenue numbers were better than analysts' expectations. For instance, Emkay Global Financial Services had expected net sales (revenue) to rise 2.3 per cent q-o-q and 16 per cent year-on-year (y-o-y) to Rs 18,552.7 crore. Net profit (profit after tax) was seen at Rs 2,931 crore, up 14.1 per cent y-o-y and down 3.5 per cent q-o-q.

Edelweiss Securities had expected revenue in rupee terms to grow 16.1 per cent y-o-y and 2.3 per cent q-o-q at Rs 18,556.9 crore. EBITDA was expected to fall 1.6 per cent q-o-q but rise 22.3 per cent y-o-y at Rs 4,398 crore. Net profit was estimated at Rs 2,783.5 crore, down 8.6 per cent q-o-q but up 8.1 per cent on y-o-y basis.

At the bourses, a combined 7.4 million equity shares changed hands on the NSE and BSE on Thursday morning.