After delivering a strong Q2 with record growth in the software business, HCLTech has announced a salary hike for its employees, effective October. HCL Tech reported an 11% year-on-year rise in net profit to Rs 4,235 crore for the second quarter.
According to Chief People Officer Ramachandran Sundararajan, a 7% salary hike will be given to employees. Top performers are expected to get a salary hike of up to 12-15%.
During the quarter that ended September 30, HCLTech won new deals across industry verticals with Total Contract Value worth $2.2 billion. The company revised the lower end of its revenue growth guidance for FY25 to 3.5%-5% (CC) and maintained EBIT margin guidance at 18%-19% for the period. The company declared a dividend of ₹12 per share.
“We delivered a strong quarter with revenue growing 1.6% QoQ in constant currency and EBIT coming in at 18.6%. This growth was well distributed across verticals, geographies and offerings. HCLSoftware has delivered a stellar performance of 9.4% YoY this quarter and 6.4% growth in H1 FY25 in constant currency, demonstrating the increasing relevance of our products for the digital economy. Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration and efficiency-led programs. Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth and innovation over the medium term,” said C Vijayakumar, CEO & Managing Director, HCLTech.
Revenue in constant currency (CC) grew 6.2% YoY, while dollar revenue reached $3.4 billion, up 6.8% YoY. Services revenue for the quarter was up 5.9% YoY (CC) while Digital revenue was up 7.8% YoY (CC). Engineering and R&D Services business (ERS) grew by 4.3% YoY (CC).
Geographically, Americas recorded the highest revenue growth of 7.5% YoY (CC), followed by Europe at 4.2% YoY (CC). Industry vertical growth was led by Telecommunications, Media, Publishing & Entertainment (61.2% YoY in CC), followed by Manufacturing (7.1% YoY in CC) and Retail & CPG (6.2% YoY in CC).
“HCLTech has delivered robust financial results with constant currency (CC) revenue growth at an industry leading 6.2% YoY. INR revenue reached ₹28,862 crores, marking a sequential growth of 2.9% and a YoY growth of 8.2%. This revenue growth has come with an improved profitability. Our EBIT margins in Q2 rose to 18.6%, up 149 bps sequentially,” said Shiv Walia, Chief Financial Officer, HCLTech.