HCL Technologies Reports Strong Q2 FY25 Earnings: PAT Up 10.51% YoY, Revenue Surges to ₹28,862 Crore

HCL Technologies has reported robust earnings for Q2 FY25, surpassing market expectations across all key metrics. Here are the essential details:

1. Profit After Tax (PAT): The company’s consolidated PAT reached ₹4,235 crore, reflecting a year-on-year growth of 10.51%. However, this figure represents a slight decline of 0.5% from ₹4,257 crore in Q1 FY25.
2. Revenue Performance: Consolidated revenue increased by 8.21% year-on-year to ₹28,862 crore, with a marginal rise from ₹28,057 crore in Q1 FY25. In dollar terms, revenue stood at $3,445 million, marking a 2.4% quarter-on-quarter increase and a 6.8% year-on-year growth.
3. EBITDA: HCL Technologies reported an EBITDA of ₹6,369 crore for Q2 FY25, compared to ₹5,944 crore in Q2 FY24 and ₹5,793 crore in Q1 FY25.
4. Key Growth Drivers: The impressive growth was driven by significant deal wins across various sectors, with new deal wins totaling $2,218 million. The company’s digital revenue was particularly noteworthy, contributing 38.5% of total services revenue and growing by 7.8% year-on-year in constant currency.
5. Revised Guidance: HCL Tech has raised its lower-end revenue guidance for FY25 to 3.5% from the previous 3% while maintaining the upper-end target at 5% year-on-year growth in constant currency. The anticipated growth for services revenue is projected to be between 3.5% and 5.0% year-on-year.
6. Market Reaction: Following the earnings report, HCL Tech’s share price closed at ₹1,856 apiece, up by 0.9% on the Bombay Stock Exchange, with a market capitalization of ₹5,03,656.24 crore. The stock had previously reached a new 52-week high of ₹1,864 during trading.
7. Future Outlook: CEO C. Vijayakumar noted the strong growth across various verticals and emphasized the growing significance of HCL Software in the digital landscape. Chairperson Roshni Nadar Malhotra expressed the company’s commitment to sustainable growth and the importance of upskilling employees in next-generation technologies.

In summary, HCL Technologies has delivered strong Q2 FY25 results, showcasing solid performance and a positive outlook for future growth, driven by strategic initiatives and robust deal activity.

Disclaimer: The information provided in this report is for informational purposes only and should not be considered financial advice. HCL Technologies’ performance and future outlook are subject to various risks and uncertainties, which may affect actual results. Investors should conduct their research and consult with a financial advisor before making investment decisions. The data presented is based on publicly available information and is accurate as of the date of this report.