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India’s third-largest IT services firm HCLTech maintained its FY25 revenue growth guidance in the range of 3 per cent to 5 per cent.
The Noida-headquartered IT services major HCLTech’s net profit for the first quarter of FY25 came in at Rs 4,257 crore. Profits were up 20.4 per cent year-on-year (Y-o-Y) and grew 6.8 per cent sequentially.
Revenue for the quarter grew 6.7 per cent Y-o-Y to Rs 28,057 crore. On a sequential basis, revenue growth was up by 1.6 per cent.
HCLTech’s Q1 performance was a marginal beat compared to Bloomberg estimates. Bloomberg had estimated revenue to be at Rs 28,024 crore and net profit to be at Rs 3,845 crore.
The total contract value (TCV) for the first quarter came in at $1.96 billion. However, compared to the fourth quarter, TCV was down 14 per cent. TCV in Q4 FY24 came in at $2.29 billion.
On a softer guidance compared to FY23, C Vijayakumar, chief executive officer and managing director, HCLTech, said: “We are pleased to report another quarter of industry-leading performance with 5.6 per cent Y-o-Y revenue growth on a constant currency basis. Our Q1 revenue and EBIT performance was slightly better than our expectations. We clocked in $2 billion TCV of new business bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies.”
The growth driver for the company in terms of geography continued to be North America and Europe. Unlike some of its larger peers who have seen US growth falling, HCLTech reported a growth of 8 per cent Y-o-Y. Europe grew 3 per cent, however, the rest of the world declined by 3.6 per cent.
BFSI, one of the largest segments for the industry and the company, was down 1.3 per cent Y-o-Y, grew at 2.8 per cent sequentially, and 8.6 per cent Y-o-Y.
Roshni Nadar Malhotra, chairperson, HCLTech, said: “With our future-ready portfolio, we are well-placed to tap emerging opportunities led by GenAI. We remain committed to doing business sustainably and responsibly as we continue to supercharge progress for our clients.”
The growth driver for the company in terms of verticals was telecommunications, media, publishing, and entertainment at 69.2 per cent, followed by retail and CPG at 9.7 per cent.
The company said that the fall in decline is due to the divestiture of its business with State Street. Due to this the headline drop has been 7,398. However, the company added 1,078. The firm also said that it plans to hire 10,000 freshers this fiscal.
First Published: Jul 12 2024 | 6:31 PM IST
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