HCLTECH declares dividend as Q3 profit drops 15%
16:31, 14 January 2022
India’s HCL Technologies (NSE: HCLTECH) announced on Friday that it logged a lower profit for the quarter through December 2021, despite a growth in revenue.
The software exporter reported a 15.2% year-on-year drop in net income for the three months to 31 December, to $458m (£334.8m/€400.7m), in spite of a 13.8% year-on-year increase in revenue at $29.77bn.
Quarterly profits were higher by $59.4m a year-ago because of the “reversal of a prior years’ tax provision due to change in the method of calculating a tax deduction, basis evaluation of judicial rulings. Excluding this, the profit after tax for Q3 FY22 is down 4.7% YoY in dollar terms,” the firm informed shareholders.
The software developer declared a dividend of INR10 per share for the third-quarter of the ongoing Indian financial year, with this being the 76th successive quarter to see a dividend pay-out, according to the 14 January stock market statement.
Headcount boosted
The company said it added over 10,000 new employees during the period under review. It has a market capitalisation of around INR3.63trn on the National Stock Exchange (NSE), where its shares have advanced some 34% over the past 12 months.
“We have delivered all-round stellar performance (in Q3) with a revenue growth of 7.6% in constant currency quarter over quarter, the highest recorded in the last 46 quarters,” said HCL Technologies chief executive C Vijayakumar.
“Our Products & Platforms segment led the growth with 24.5% quarter-on-quarter, followed by Engineering & R&D Services with 8.3% and IT & Business Services with 4.7%. Our future looks bright as we had a very strong net new booking of $2.1bn, a 64% YoY increase,” Vijayakumar added.
Client acquisitions
The software services provider announced on Friday that it is to purchase Hungarian data engineering services firm Starschema for an undisclosed amount. The target is a data engineering consultant to more than 2,000 global firms, mostly in the US and Europe.
Earlier, in December, HCL stated it will partner with Germany’s largest co-operative bank, Deutsche Apotheker- und Ärztebank eG (apoBank), to buy technology consultancy Gesellschaft für Banksysteme (GBS) from Atruvia AG.
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