HCL Tech raises CC growth guidance after strong Q3 earnings

HCL Tech raises CC growth guidance after strong Q3 earnings

HCL Technologies reported a 26.7% jump in consolidated profit for the quarter ended December 2020 at Rs 3,982 crore, versus Rs 3,142 crore in the previous quarter.
Consolidated revenue of India’s third-largest software services provider, for the quarter under review, grew 3.8% to Rs 19,302 crore, driven by broad-based growth in segments and geographies. Revenue stood at Rs 18,594 crore in the September quarter.

Dollar revenue during December quarter stood at $2,617 million, up from $2,507 million in the second quarter of FY21.
Following the ease of COVID-19 concerns, the company in October last year had guided 1.5-2.5% revenue growth in constant currency for Q3 FY21 & Q4 FY21, while the FY21 EBIT margin guidance was also revised upwards to 20-21% from 19.5-20.5%.
HCL Tech’s revenue crosses USD 10 billion milestone in CY20, delivering 3.6% YoY growth in constant currency.
It has won 13 transformational deals across industry verticals, including Life Sciences and Healthcare, Technology and Financial Services.

The board of directors declared an interim dividend of Rs 4 per equity share for the Financial Year 2020-21.
The record date for the payment of the interim dividend has been fixed to January 23, 2021. The payment date of the interim dividend shall be February 8, 2021.
IT Services Attrition (LTM) was at 10.2%, down 667 bps on a YoY basis. Net additions stood at 6,597 during the quarter.

Earnings before interest, tax (EBIT) margin stood at 22.9% versus 21.6% (QoQ).
It has raised revenue guidance in Constant Currency for Q4 FY21 from 1.5-2.5% to 2-3% and EBIT margin in FY21 is in the range of 21-21.5% compared to 20-21% earlier.

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