HCL Technologies (HCLTECH) Q3 24/25 earnings summary

Executive summary

• Celebrated 25 years as a public company, with revenue growing from $166M in 1999 to $13.77B in the last 12 months, and employee count reaching 220,755 as of December 2024.

• Q3 FY25 saw constant currency revenue up 3.8% QoQ and 4.1% YoY, with INR revenue at ₹29,890 Cr and USD revenue at $3,533M.

• EBIT reached ₹5,821 Cr (19.5% margin), net income was ₹4,591 Cr (15.4% margin), both at all-time highs.

• Board approved unaudited consolidated and standalone financial results for Q3 FY25, with statutory auditors issuing unmodified review reports.

• Interim dividend of ₹18 per share, including a special ₹6 dividend, was declared to mark 25 years of public listing.

Financial highlights

• Q3 revenue was $3,533M, up 3.8% sequentially and 4.1% year-on-year in constant currency; INR revenue at ₹29,890 crore, up from ₹28,446 crore YoY.

• Operating margin (EBIT) at 19.5%, up 93 bps QoQ; net income at $544M (15.4% of revenue), both at all-time highs.

• Free cash flow (LTM) was $2,716M, with FCF/NI at 134%; operating cash flow for the last 12 months at INR 285B.

• EPS for the last 12 months at INR 62.91, up 8.7% YoY; Q3 FY25 basic EPS at ₹16.94.

• Dividend payout for the year at INR 60/share (95.2% of net income); interim dividend for FY25 so far totals ₹42 per share.

Outlook and guidance

• FY25 revenue growth guidance revised to 4.5%-5% YoY in constant currency, including impact from HPE CTG acquisition.

• EBIT margin guidance unchanged at 18%-19%.

• Q4 expected to be softer due to project completions and planned rundown in a mega telecom deal; ramp-up of new deals will only partially contribute.

• Board declared a special dividend to celebrate 25 years of public listing, indicating confidence in future performance.

• Pipeline remains near all-time high, with strong ACV growth (23% YoY, 9% QoQ).