HCLTech Reports 5.5% Net Income Growth at Rs 4,591 Crore in Q3 FY25
Global technology company HCLTech announced a 5.5% year-on-year growth in net income, reaching Rs 4,591 crore for Q3 FY25.
Mumbai: Global technology company HCLTech announced a 5.5% year-on-year growth in net income, reaching Rs 4,591 crore for Q3 FY25.
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The company’s revenue grew 5.1% year-on-year, standing at Rs 29,890 crore.
Strong EBIT Margin and Performance
HCLTech reported an EBIT margin of 19.5% for Q3, up from 18.58% in Q2 FY25, surpassing analysts’ expectations of 19.3%. The EBIT (earnings before interest and tax) for the quarter stood at Rs 5,821 crore, marking a significant achievement.
Workforce Growth and Attrition Rate
The company added 2,134 employees in Q3, bringing its total workforce to 220,755. However, the attrition rate increased to 13.2%, up from 12.8% in the same quarter last year.
CEO’s Statement on Solid Growth
C Vijayakumar, CEO and Managing Director of HCLTech, stated, “HCLTech delivered another quarter of solid growth with a 3.8% quarter-on-quarter growth in constant currency and an EBIT margin of 19.5%. This growth was driven by strong performances across business lines, with clients across verticals and geographies reaffirming their confidence in our digital and AI offerings.”
New Deals and Software Wins
The company secured new deal bookings worth $2.1 billion in Q3, including wins in both services and software. HCLTech also declared a dividend of Rs 18 per share, which includes a special dividend of Rs 6 per share.
Future Prospects with AI and Digital Transformation
Vijayakumar added, “We are positioning ourselves for a transformative future with AI playing a key role in empowering businesses and employees. There is growing demand for our AI-led propositions across both services and software offerings.”
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Robust Cash Flow and Balance Sheet Strength
Shiv Walia, Chief Financial Officer of HCLTech, highlighted the company’s strong financial position, noting that cash conversion on an LTM basis (Last Twelve Months) was 134% for Q3, surpassing the company’s 5-year average of 126%. The company ended the quarter with a record cash balance of Rs 27,707 crore.
Positive Outlook and Industry-Leading Growth
Analysts have praised HCLTech’s Q3 performance, with the company on track to achieve industry-leading growth among tier-1 IT companies for FY25, supported by its continued focus on digital and AI-driven offerings.
