Q4 Results: HCL Technologies’ profit fell 26%, this is the main reason

Consolidated profits of HCL Technologies, one of the giants operating in the IT sector, declined by 26.6 percent, after which the profit stood at Rs 2962 crore. This has been revealed in the fourth quarter results released by HCL Technologies. The main reason behind this decline was the increase in salary of its employees by HCL Technologies and giving a one time bonus of Rs 700 crore. Last year, HCL Technologies posted a profit of Rs 3982 crore in the December quarter.

In the fourth quarter ended 31 December 2021, the company’s revenue on quarterly basis was up by 1.8 per cent to Rs 19,642 crore as against Rs 19,302 crore in the previous quarter. During the quarter, the company’s dollar revenue grew by 3 percent sequentially to $ 269.6 million. Whereas in CNBC TV18’s poll, HCL Technologies’ dollar revenue growth was estimated at 3.6% on a quarterly basis.

Speaking on the results, C Vijay Kumar, President and CEO of the company said that on the basis of fourth quarter of FY 2021, the company’s constant revenue growth was 25% strong. The company’s EBIT margin in Q4 declined to 20.4 per cent from 22.9 per cent in the previous quarter. The same EBIT has been reduced from Rs 4416 crore in the previous quarter to Rs 3980 crore.

In Q4, the company has received the highest number of new deals so far. In this quarter, the company has received new deals worth $ 3.1 billion, which is 48 per cent higher on an annual basis. Giving guidance on its further performance, the company hoped that FY2022 Constant Currency Growth could remain in double digit while EBIT margin could be between 19-21 per cent.

Let us tell you that HCL Technologies had issued a lump-sum special bonus to its employees all over the world in the year 2020 to cross the income level of US $ 10 billion in which all employees with one year or more service will be given ten days. A bonus was given on par with the salary.

Apparao VV, Chief HR Officer, HCL Technologies, said that despite the epidemic, every member of the HCL family showed their strong commitment and passion and contributed to the growth of the organization. As of 31 December 2020, the number of full-time employees of HCL was 159682.