HCL reported 14% QoQ and 8% YoY Revenue growth at Rs. 26,672 crore and a constant currency revenue growth of 10% QoQ and 3.4% YoY. The company reported USD revenue at 3,225 million, up 0.8% QoQ and 4.6% YoY. HCL services’ revenue is up 1.6% QoQ, 3.4% YoY. The company’s clients are worth more than USD 100 million, up 3 QoQ and 7 YoY.
Profitability wise, EBIT was at Rs. 4,934 crore, which is 18.5% of revenue and up 10.6% QoQ and 11.5% YoY. Services EBIT is reported to have an increase in its margin by 212 bps QoQ. Net profits for the quarter is Rs. 3,832 crore, indicating a 14.4% margin. Net Profits grew 8.4% QoQ and 9.8% YoY.
Other Key metrics that have seen growth include ROIC – which stands at 32.2%, up 347 bps YoY; LTM Attrition rate – 14.2%, down considerably from 23.8% previous year. Total headcount is 221,139 – Net addition of -2,299, including addition of 3,630 freshers. HCL’s TCV (New Deal Wins) is at USD 3,969 million.
HCL has guided organic revenue growth of 4-5% YoY in constant currency for FY24. Likewise, constant currency growth for services in FY24 is guided at 4.5-5.5%. Furthermore, EBIT margin is guided to be in the range of 18-19%. Europe geographic segment saw highest growth at 10.9% YoY or 5.4% constant currency growth YoY.
Infosys reported 3.6% YoY and 2.2% QoQ growth in Revenue for Q2 FY24 at Rs. 38,994 crore. Constant currency growth of revenue is 2.5% YoY and 2.3% QoQ. Further, Net profits grew 3% YoY to Rs. 6,212 crore. Operating margin stands at 21.2%, up 40 bps QoQ and 30 bps YoY. FCFF is at Rs. 5,536 crore, indicating a growth of 16.5% YoY and 89.1% of profits.
Other Key metrics that saw growth were TTMattrition rate which is at 14.6%, down significantly from 17.3% in Q2 FY23. Total headcount stands at 328,764, net addition of -7,530. Employee utilization however, rose 380 bps from 76.6% to 80.4% YoY. FY24 revenue guidance revised to 1.0%-2.5% and operating margin guidance retained at 20%-22%. The guidance for revenue is lowered from 1-3.5% previous guidance in June.
Shares of INFY listed on the NYSE as ADRs dropped 6.5% on weak guidance and it is currently trading 2.5% in the red on Indian Exchanges. HCL however, is among the top performers and is trading 1.8% in the green on Friday.
Written by Sandeep R
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