HCLTech’s net profit grows by 20% YoY in Q1FY25

IT services firm HCLTech has reported a revenue of ₹28,057 crore down by 1.6% on a quarterly basis, for the April to June period. The company's net income stood at ₹4,257 crore, up by 6.8% from the last quarter and 20.4% on a year-on-year basis.

“We are pleased to report another quarter of industry-leading performance with 5.6 % YoY revenue growth on constant currency basis. Our Q1 Revenue and EBIT performance was slightly better than our expectations,” said C Vijayakumar, CEO and managing director. 

Vertical-wise, Telecom, media and publishing sector was the biggest gainer in terms of year-on-year (YoY) growth of over 69%. Manufacturing, technology and engineering, and retail verticals grew as well. The financial services vertical degrew by 1.3% on the back of HCLTech’s divestiture from the joint venture with investment services and management firm State Street International Holdings. In April, the IT services company’s step-down wholly-owned subsidiary HCL Investments UK entered into a pact to divest its entire 49% holding in their JV with the US company.

HCLTech chief also said in the media briefing that Q1 is traditionally a ‘soft’ quarter for the company. He added the growth is expected to pick up across verticals and geographies except for the financial services.

In terms of generative AI, the company said that it has registered a few prominent deal wins, including the implementation of a GenAI-based solution for gaming review analysis at a major global technology firm. Additionally, by the last quarter the company had trained 42,000 employees, now it aims at certifying 20,000 employees each quarter in generative AI skills.

HCLTech’s headcount decreased by 8,080 employees in the first quarter to 219,401. Close to 7,400 role deduction happened due to the State Street JV divestiture.