HCLTech Q3 results: Net profit rises 5.5% to Rs 4,591 cr, revenue up 5%

India’s third-largest IT services firm, HCLTech, has raised the lower end of its FY25 revenue growth guidance to the range of 4.5 per cent to 5 per cent. Earlier, the firm had provided a revenue guidance of 3.5–5 per cent.

The Noida-headquartered IT services major, HCLTech, reported a net profit for the third quarter (October–December) of FY25 at Rs 4,591 crore. Profits rose 5.5 per cent year-on-year (YoY) and increased 8.4 per cent sequentially.

Revenue for the quarter stood at Rs 29,890 crore, up 5 per cent YoY and growing 3.5 per cent sequentially.

HCLTech’s Q3 performance missed Bloomberg estimates. Bloomberg had estimated revenue to be Rs 30,035.8 crore and net profit to be Rs 4,613.9 crore.

“HCLTech delivers another quarter of solid growth at 3.8% QoQ in constant currency and EBIT at 19.5%. I am pleased that this growth is powered by broad-based performance across business lines as our clients across verticals and geos reaffirm their confidence in our Digital and AI offerings. Our new deal bookings were healthy during the quarter at $2.1 billion, with wins across services and software. We are positioning ourselves for a future that is transformative, with AI empowering businesses and employees. We continue to see growing demand for our AI-led propositions across services and software offerings,” said C Vijayakumar, CEO and MD, HCLTech.

The company continued to grow its business in North America and Europe. North America grew by 6.2 per cent YoY, and Europe was up 2.6 per cent.

The growth driver for the quarter was Telecommunications, Media, Publishing & Entertainment, which grew by 33 per cent YoY, followed by Retail & CPG (17.2 per cent) and Technology & Services (7.6 per cent). Though BFSI continued to decline by 1.4 per cent, this was an improvement over the 4.5 per cent drop in Q2 FY25.

“Our razor-sharp focus on achieving topline growth with healthy margins is reflected in our highest-ever EBIT of Rs 5,821 crore and net profit of Rs 4,591 crore this quarter. Q3 EBIT margins came in at 19.5% (up 93 bps QoQ). Cash conversion (on an LTM basis) continues to outpace our five-year FCF/NI average of 126%, with FCF/NI at 134% this quarter. This has further strengthened our balance sheet, helping us end the quarter with our highest-ever cash balance of Rs 27,707 crore,” said Shiv Walia, CFO, HCLTech.

The company had a net addition of 2,134 employees at the end of the December quarter. During the quarter, HCLTech added 2,014 freshers. In Q2 FY25, the company had a total headcount degrowth of 780, down from 8,080 in Q1 FY25. Attrition for the quarter was at 13.2 per cent, up from the preceding quarter’s 12.9 per cent

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