HCL Tech Q4 net profit up 8% YoY, board recommends interim dividend of ₹18/share; key takeaways

"HCL Tech grew the fastest among our peers for the second year in a row as we witnessed yet another year of disciplined execution. We delivered on our FY25 guidance with revenue growth of 4.7% in constant currency (CC) and EBIT margin of 18.3%," said C Vijayakumar, CEO and Managing Director of HCL Tech.

Revenue from operations of HCL Tech, the country's third-largest information technology (IT) services company, jumped 6.13% YoY to ₹30,246 crore as against ₹28,499 crore in the year-ago period. In Q3 FY25, the company posted a revenue of ₹29,890 crore.

For the financial year ended March 31, 2025, the company’s board recommended an interim dividend of ₹18 per share. The record date for the dividend payment is set as April 28, 2025, while the payment will be made on May 6, 2025.

HCL Technologies Q4 FY25 results: Key takeaways

• The Q4 FY25 results of HCL Technologies met estimates. The IT major’s EBIT for the reporting quarter stood at ₹5,442 crore, up 8.4% YoY as compared to ₹5,018 crore in Q4 FY24 and down 6.5% QoQ from ₹5,821 crore in Q3 FY25.

• In dollar terms, the revenue of HCL Tech stood at $3,498 million, down 1% QoQ but up 2% YoY.

• The IT major earned 63.9% of its revenue from the Americas region, 29.2% from Europe and 6.9% from the rest of the world.

• The financial services vertical contributed 21.1% to HCL Tech’s revenue, followed by manufacturing (18.6%), life sciences and healthcare (14.7%), telecommunications, media, publishing, and entertainment (13.9%), technology and services (13.4%), retail and CPG (9.7%), and public services (8.6%).

• HCL Tech’s attrition rate, which assesses the employee retention and workforce stability of a company, stands at 13%, up from 12.4% in the same period last year. The total employee count of the company stands at 2,23,420, up by 2,665 employees in the reporting quarter, out of which 1,805 were freshers. In the year-ago period, the headcount of the company stood at 2,27,481, which means that there was a net decrease of 4,061 employees compared to the same period last year.

• As per HCL Technologies’ guidance for the current financial year (FY26), the company’s revenue is expected to grow between 2 to 5% YoY in constant currency terms. The services revenue of HCL Tech is expected to stand between 2 to 5% in FY26, while the EBIT margin could be between 18 to 19%.

• HCL Tech CEO and Managing Director C Vijayakumar said that the IT company was resilient and demonstrated growth in the current situation of the global economy amid uncertainty, adding that the company delivered on its FY25 guidance. "We delivered good growth during challenging times. Razor sharp focus on clients helped results that matched guidance. Third year of services business outpacing similar peers," he said.

• HCL Technologies’ total contract value (TCV) of new deal wins was at $2,995 million in Q4 FY25 against $9,268 million for the entire financial year 2024-25 (FY25). The key wins included a strategic partnership with Western Union and a partnership with a Fortune 50 telecommunications company to enhance its high-density network performance, among others.

• The company also announced that a major APAC-based financial services company selected HCL Tech to transform its retail banking—one of its major deal wins.

• On Trump tariffs, CEO Vijayakumar said that the company could be impacted in retail consumer packaged goods manufacturing after the US tariffs are implemented.