Mon Oct 14 14:23:23 UTC 2024: ## HCLTech’s Profit Rises 10.5% in Q2, Revenue Up 8.2%

**New Delhi:** India’s third-largest IT services company, HCLTech, reported a strong second quarter performance, with net profit surging 10.5% year-on-year to ₹4,235 crore. Revenue also saw a healthy growth of 8.2% year-on-year, reaching ₹28,862 crore.

The company attributed the robust performance to growth across various sectors, countries, and services. HCLTech also raised its revenue growth forecast for FY25 to 3.5-5% from the earlier 3-5%, highlighting its optimism about future prospects.

**Key Highlights:**

* **Profit:** Net profit rose 10.5% YoY to ₹4,235 crore.
* **Revenue:** Revenue increased 8.2% YoY to ₹28,862 crore.
* **TCV:** Total Contract Value (TCV) stood at $2.2 billion, higher than the previous quarter’s $1.96 billion.
* **EBIT Margin:** EBIT margin improved to 18.6%, a 149 basis point (bps) increase from the previous quarter.
* **ROIC:** Long-Term Investment Return (ROIC) remained strong at 35.7%, with services ROIC at 43.5%.
* **New Hires:** The company added 2,932 freshers during the quarter, despite a decline in overall employee count by 780.

HCLTech’s CEO and MD, C Vijayakumar, highlighted the company’s focus on data and AI, digital engineering, SAP migration, and efficiency-enhancing projects. He also emphasized the popularity of HCLTech’s GenAI solutions, which are expected to drive future growth and innovation.

The company’s performance exceeded Bloomberg’s estimates, with revenue and net profit exceeding expectations. HCLTech also saw strong growth in North America and Europe, with revenue rising 7.5% and 4.2%, respectively. The telecom, media, publishing, and entertainment sector led the growth with a 61.2% YoY increase.

However, the BFSI (Banking, Financial Services, and Insurance) sector witnessed a decline of 4.5%. Despite this, the company remains optimistic about its future performance and its ability to capitalize on emerging trends in the IT sector.

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