HCL Technologies (HCLTECH) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached ₹28,057 crore ($3,364 million), up 6.7% year-over-year and down 1.6% sequentially; net income rose to ₹4,259 crore, up 20.6% year-over-year and 6.6% sequentially.

• EBIT margin was 17.1%; robust cash flow with LTM FCF at $2,604 million, 133% of net income.

• Bookings totaled $1.96 billion, with a healthy mix of small and large deals; digital revenue grew 6.0% YoY CC, now 37.4% of services.

• Attrition rate dropped to 12.8%, among the lowest in the industry.

• Leadership reaffirmed confidence in FY25 guidance, citing strong GenAI and digital demand.

Financial highlights

• Revenue: ₹28,057 crore ($3,364 million), up 6.7% year-over-year and down 1.6% sequentially; CC revenue up 5.6% YoY.

• EBIT: ₹4,795 crore (17.1% margin), down 4.4% QoQ, up 7.5% YoY; net income: ₹4,259 crore (15.2% margin), up 20.6% YoY.

• Operating cash flow (LTM): $2.7 billion, up 9% year-over-year; free cash flow: $2.6 billion, up 12%.

• Gross cash: $3.26 billion; net cash: $2.985 billion.

• Diluted EPS (LTM): ₹60.52, up 8.7% year-over-year; interim dividend: ₹12/share.

Outlook and guidance

• FY25 revenue growth guidance maintained at 3%-5% in constant currency; EBIT margin guidance at 18%-19%.

• Q2 expected to see sequential growth in all verticals and geographies except financial services, impacted by the State Street divestiture.

• Confident in meeting full-year guidance despite 80-90 bps revenue impact from State Street divestiture.