HCLTech, India's third-largest IT services firm after Tata Consultancy Services (TCS) and Infosys, has reported a consolidated profit of Rs 3,983 crore ($478 million) for the quarter ended March 31.
While this figure marks a 10.85% YoY increase from the same quarter in the previous year FY 22, it is a 2.8% QoQ decline compared to the third quarter in FY 23. Meanwhile, the company's total revenue rose 17.7% to reach Rs 26,606 crore ($3.2 billion) but dropped on a sequential basis by 0.35%. Meanwhile, the EBIT surged 18.8% YoY and 7.5% QoQ to reach Rs 4,836 crore ($580 million).
Notably, the IT giant registered an uptick across all its segments. Services segment revenue grew 0.6% QoQ and 10.6% YoY in constant currency terms. Its Software Revenue grew 8.2% in constant currency terms YoY while the Digital segment's revenue also grew 16.9% YoY in constant currency terms.
In its guidance for FY24, the company expects its revenue to grow in the band of 6 - 8% YoY in constant currency terms while the EBIT margin is seen between 18 - 19%, the company said in its earnings release.
The IT major's positive financial results and guidance for the future come at a time when Indian IT companies are facing challenges of shrinking margins due to high employee costs caused by persistent attrition. The company however mustered a strong performance despite the challenging environment.