HCL Technologies Ltd (HCLTech), India’s third-largest IT services company, today reported strong financial results for the second quarter (Q2) of fiscal year 2025 (FY25).
Highlights:
- Revenue of ₹28,862 Crores (US$3,445 Million), up 2.9% QoQ and 8.2% YoY in constant currency (CC).
- Profitability remained robust, with EBIT at ₹5,362 Crores (18.6% of revenue), up 11.8% QoQ and 8.7% YoY.
- Net income of ₹4,235 Crores (14.7% of revenue), down 0.5% QoQ but up 10.5% YoY.
- HCL Software delivered a stellar performance with 9.4% YoY CC growth in revenue.
- LTM Return on Invested Capital (ROIC) stands at a solid 35.7% at company level and 43.5% at Services, demonstrating efficient capital utilization.
- Free Cash Flow (FCF) to Net Income ratio of 119% (LTM), reflecting strong cash generation capabilities.
- Continued focus on employee development with a reduction in attrition rate to 12.9% (down from 14.2% in Q2 of last year).
C Vijayakumar, CEO & Managing Director comments: “We delivered a strong quarter with revenue growing 1.6% QoQ in constant currency and EBIT coming in at 18.6%. This growth was well distributed across verticals, geographies, and offerings.”
Shiv Walia, Chief Financial Officer adds: “HCLTech has delivered robust financial results with constant currency (CC) revenue growth at an industry leading 6.2% YoY. Our dedicated efforts to improve our cash conversion continue to yield best in class results, with LTM FCF/NI coming in at 119%.”
Other Key Points:
- HCLTech maintained a healthy client base with a strong increase in the number of $100 million+ clients.
- The company secured key deal wins across various industry sectors, including AI-driven transformation, cloud migration, and digital workplace solutions.
- HCLTech remains committed to its ESG goals, as evidenced by its recognition as the #1 India-headquartered company in TIME magazine’s World’s Best Companies 2024.
Overall, HCLTech’s Q2 FY25 results demonstrate the company’s continued ability to deliver strong financial performance while investing in future growth initiatives.
