HCL Technologies has announced its financial results for the fourth quarter of the fiscal year 2025, showcasing impressive growth. On April 22, the company reported a year-on-year (YoY) increase of 8% in its consolidated net profit, reaching an impressive ₹4,307 crore. Moreover, its operational revenue demonstrated a 6% YoY rise, totaling ₹30,246 crore for the quarter under review.
Strong Growth Amid Challenges
C Vijayakumar, the CEO and Managing Director of HCL Technologies, expressed his satisfaction with the company’s performance. He noted, "HCL Tech has consistently outpaced our competitors, marking our second consecutive year of remarkable growth. We successfully achieved our FY25 revenue growth target of 4.7% in constant currency, alongside an EBIT margin of 18.3%."
- Software Growth: HCL Software saw a robust growth rate of 3.5% in constant currency this year.
- Services Performance: The services segment delivered a 0.7% quarter-on-quarter (QoQ) growth in constant currency, despite a fluctuating market environment.
- New Bookings: The company secured a significant $3 billion in new bookings this quarter, driven by advancements in AI and a well-integrated go-to-market strategy established at the beginning of the fiscal year.
Financial Highlights of HCL Tech’s Q4 Performance
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Revenue Insights:
- HCL Tech’s revenue for Q4FY25 increased by 1.2% QoQ and 6.1% YoY, amounting to ₹30,246 crore.
- For comparison, the revenue in Q4 of the previous year was ₹28,499 crore, while Q3FY25 showed a revenue of ₹29,890 crore.
- In constant currency terms, there was a slight decline of 0.8% QoQ, but a 2.9% YoY increase.
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Dollar Revenue:
- The dollar revenue for the quarter experienced a 1% QoQ decline, while it increased by 2% YoY, reaching $3,498 million.
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Service Revenue Growth:
- Services revenue, measured in constant currency, rose by 0.7% QoQ and 2.7% YoY.
- The digital segment, which makes up 40.7% of services, exhibited a robust growth of 12.6% YoY.
- Profit Performance:
- The consolidated profit for this quarter rose to ₹4,307 crore, up 8% YoY from ₹3,986 crore in the same quarter last year.
- However, sequentially, the profit dipped by 6.2% from ₹4,591 crore in Q3FY25.
HCL Technologies continues to demonstrate resilience and adaptability in a challenging economic landscape. With its continued focus on digital transformation and innovative solutions, the company is well-positioned for future growth. As the tech industry evolves, HCL Tech remains a key player, committed to delivering value to its stakeholders. Keep an eye on their upcoming ventures and market strategies for more exciting developments.