HCLTech is a global technology company, home to more than 220,000 people across 60 countries, delivering industry-leading capabilities centered around digital, engineering, cloud and AI, powered by a broad portfolio of technology services and products. We work with clients across all major verticals, providing industry solutions for Financial Services, Manufacturing, Life Sciences and Healthcare, Technology and Services, Telecom and Media, Retail and CPG, and Public Services.
| Result Analysis: HCL Technology (CMP: Rs.1714.50) | Result Update: Q3FY25 |
| Stock Details | |
| Market Cap. (Cr.) | 4,65,122 |
| Equity (Cr.) | 542.73 |
| Face Value | 2 |
| 52 Wk. high/low | 2012.20/1235 |
| BSE Code | 532281 |
| NSE Code | HCLTECH |
| Book Value (Rs) | 253.81 |
| Sector | Computer-Software |
| Key Ratios | |
| Debt-equity: | 0.08 |
| ROCE (%): | 28.63 |
| ROE (%): | 23.51 |
| TTM EPS: | 62.98 |
| P/BV: | 6.75 |
| TTM P/E: | 27.07 |
Result Highlights:
- Revenue increased by 3.6%, reaching Rs 29,890 crore compared to Rs 28,862 crore, driven by robust performance across key segments and markets, reflecting steady business expansion and a strong market presence.
- Net profit grew 8.4% to Rs 4,594 crore from Rs 4,237 crore, indicating effective cost management and higher operational efficiency, contributing to enhanced profitability despite economic challenges.
- EBIT rose 8.6% to Rs 5,821 crore, with an EBIT margin of 19.5%, up from 18.6%, demonstrating improved operational performance and strategic initiatives driving profitability and operational excellence.
- HCL Technologies reported a 2.2% QoQ and 4.9% YoY growth in Services revenue in constant currency (CC), driven by strong performance across key markets. Digital revenue rose 6.3% YoY CC, now contributing 38.5% of Services revenue, highlighting growth in digital transformation. However, HCL Software faced a 2.1% YoY decline in revenue CC, with ARR standing at $1.02 billion, down 0.6% YoY CC, reflecting stability despite challenges in the software segment.
- 12,600+ employees leveraged HCLTech’s Value Creation Portal in Q3 FY25, generating, reviewing and approving 4,260+ ideas and implementing 2,030+ ideas that delivered customer signed-off value worth $390 million. And 13 patents were filed and 20 were granted in Q3 FY25
- HCLTech strengthened its capabilities in AI-driven contact center transformation by further expanding its strategic partnership with a US-based global technology company to help transform contact centers with generative AI and cloud-based solutions.
Financial Performance:
Shareholding Pattern:
| Particulars (In %) | Q3FY25 | Q3FY24 |
| Promoters Group | 60.82 | 60.82 |
| FIIs | 19.38 | 19.42 |
| DIIs | 15.21 | 15.12 |
| Public | 4.42 | 4.40 |
| Others | 0.13 | 0.21 |
| Govt | 0.04 | 0.02 |
Management Commentary:
- HCLTech is well positioned as AI-led transformation brings new opportunities for growth. The company is continue to deliver industry-leading performance with governance and sustainability at the core.
- Dividend of ₹18/- per share including special dividend of ₹6/- per share to celebrate 25 years of HCLTech’s public listing.
- For FY25, the company has guided a revenue growth of 4.5% to 5% YoY in constant currency (CC). Services revenue is expected to grow within the same range of 4.5% to 5% YoY in CC. The EBIT margin is projected to be between 18% and 19%, reflecting stable profitability and operational efficiency.
Outlook:
HCLTech’s strong performance in Q3 FY25 positions it well for sustained growth, with a revenue increase of 3.6% and robust profitability. The company’s focus on AI-driven solutions and digital transformation continues to drive its success, particularly in services, with digital revenue rising 6.3% YoY. For FY25, HCLTech has guided a revenue growth of 4.5% to 5% YoY in constant currency, along with an EBIT margin between 18% and 19%, ensuring stability and efficiency. The company’s continued focus on innovation, AI, and sustainable growth strategies will support its long-term performance and value creation.
Results:
| Particulars (In Rs. Cr.) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ % | YoY % | FY24 | FY23 | YoY % |
| Sales | 29890 | 28862 | 28446 | 3.6 | 5.1 | 109913 | 101456 | 8.3 |
| Other Income | 477 | 456 | 370 | 4.6 | 28.9 | 1495 | 1358 | 10.1 |
| Total Income | 30367 | 29318 | 28816 | 3.6 | 5.4 | 111408 | 102814 | 8.4 |
| Total Expenditure | 23030 | 22493 | 21659 | 2.4 | 6.3 | 85715 | 78828 | 8.7 |
| EBIDT | 7337 | 6825 | 7157 | 7.5 | 2.5 | 25693 | 23986 | 7.1 |
| Interest | 166 | 131 | 140 | 26.7 | 18.6 | 553 | 353 | 56.7 |
| EBDT | 7171 | 6694 | 7017 | 7.1 | 2.2 | 25140 | 23633 | 6.4 |
| Depreciation | 1039 | 1007 | 1143 | 3.2 | -9.1 | 4173 | 4145 | 0.7 |
| EBT | 6132 | 5687 | 5874 | 7.8 | 4.4 | 20967 | 19488 | 7.6 |
| Tax | 1229 | 1191 | 1348 | 3.2 | -8.8 | 4626 | 4665 | -0.8 |
| PAT | 4594 | 4237 | 4351 | 8.4 | 5.6 | 15710 | 14845 | 5.8 |
| EPS | 16.94 | 15.62 | 16.06 | 8.5 | 5.5 | 57.99 | 54.85 | 5.7 |
| Segment Revenue (%) | Q3FY25 | Q2FY25 | Q3FY24 |
| IT and Business Services | 73 | 74.6 | 71.8 |
| Engineering and R&D Services | 16 | 15.8 | 16.5 |
| HCLSoftware | 11.3 | 9.9 | 12 |
| Inter-Segment | 0.3 | 0.03 | 0.03 |
| Vertical Revenue (%) | Q3FY25 | Q2FY25 | Q3FY24 |
| Financial services | 20.3 | 20.5 | 21.7 |
| Manufacturing | 19.1 | 19.5 | 20.1 |
| Lifesciences & Healthcare | 15.5 | 16 | 16.4 |
| Technology and Services | 13.3 | 13.1 | 12.8 |
| Telecommunications, Media, Publishing & Entertainment | 12.3 | 12.1 | 9.7 |
| Retail & CPG | 10.6 | 9.6 | 9.6 |
| Public Services | 8.9 | 9.2 | 9.7 |
| Geography Revenue (%) | Q3FY25 | Q2FY25 | Q3FY24 |
| America | 65.5 | 65.1 | 64.5 |
| Europe | 28.2 | 28.4 | 29 |
| Rest of the World | 6.3 | 6..5 | 6.4 |
Source: Company website, EWL Research
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