Mon Jan 13 22:18:48 UTC 2025: ## HCL Tech Reports Strong Q3 Earnings, Declares Hefty Dividend

**NOIDA, INDIA – January 13, 2025** – HCL Technologies (HCL Tech) today announced strong results for its fiscal third quarter (Q3) ending December 31, 2024, exceeding market expectations despite industry-wide challenges. The company reported a net profit of Rs 4,591 crore (approximately $560 million USD), a 5.5% year-on-year increase. Revenue from operations reached Rs 29,890 crore (approximately $3.6 billion USD), a 5.08% rise compared to the same period last year. This represents a 3.6% sequential growth in INR terms and 3.8% in constant currency.

The strong performance was driven by broad-based growth across business lines and geographies, fueled by robust demand for HCL Tech’s digital and AI offerings. New deal bookings totaled $2.095 billion. EBIT margin reached a record high of 19.5%, up 93 basis points quarter-over-quarter. CEO & Managing Director C Vijayakumar attributed the success to client confidence in HCL Tech’s AI propositions.

CFO Shiv Walia highlighted the company’s strong financial position, reporting the highest ever EBIT of Rs 5,821 crore and a record cash balance of Rs 27,707 crore. He emphasized the company’s focus on topline growth and healthy margins.

To celebrate its 25th anniversary of public listing, HCL Tech’s board declared a fourth interim dividend of Rs 18 per share, including a special dividend of Rs 6 per share.

While the results generally met expectations, HCL Tech’s share price dipped slightly following the announcement. Analysts offered mixed views, with some citing concerns about discretionary spending and seasonal furloughs impacting overall industry growth in Q3. However, the company revised its FY25 revenue growth guidance upwards to 4.5-5%, suggesting continued optimism for the future. Several analysts maintained a “buy” rating on the stock, anticipating HCL Tech to lead growth amongst its Tier 1 IT peers in FY25. The company is well-positioned to benefit from the increasing adoption of AI-led transformations.

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