HCL Technologies (HCLTech), a leading global IT services company, has seen its share price surge to a new all-time high following the announcement of its Q1FY25 results. The stock closed at ₹1,810.00 on the BSE, up 0.25% from its previous close of ₹1,805.55, with a 52-week high of ₹1,815.95 and a low of ₹1,210.00.
Main Points
HCLTech Q1FY25 Results Highlights
- Revenue of ₹28,057 crore, down 1.6% QoQ but up 6.7% YoY
- Constant Currency (CC) Revenue down 1.6% QoQ but up 5.6% YoY
- USD Revenue of USD 3,364 million, down 1.9% QoQ but up 5.1% YoY
- HCLTech Services Revenue down 1.9% QoQ but up 5.8% YoY CC
- Digital Revenue up 6.0% YoY CC; contributes 37.4% of Services
- HCLSoftware Revenue up 3.5% YoY CC
- HCLSoftware ARR at USD 1.01 billion, down 0.3% YoY CC
- EBIT at ₹4,795 crore (17.1% of revenue), down 4.4% QoQ but up 7.5% YoY
- Net Income at ₹4,257 crore (15.2% of revenue), up 6.8% QoQ and 20.4% YoY
- TCV (New Deal wins) at USD 1,960M
Positive Outlook and Guidance
Roshni Nadar Malhotra, Chairperson of HCLTech, stated, “With our future-ready portfolio, we are well placed to tap emerging opportunities led by GenAI. We remain committed to doing business sustainably and responsibly as we continue to supercharge progress for our clients.”C Vijayakumar, CEO & Managing Director of HCLTech, added, “We are pleased to report another quarter of industry-leading performance with 5.6% YoY revenue growth on constant currency basis.
Our Q1 Revenue and EBIT performance was slightly better than our expectations. We clocked in USD 2B TCV of new business Bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies.”
Peer Comparison and Market Outlook
HCLTech’s share price performance has been impressive compared to its peers in the IT sector. Over the past year, the stock has gained 39.14%, outperforming the S&P BSE Sensex’s return of 15.94% and the S&P BSE IT index’s return of 23.39%.
The IT consulting and software sector has been a key driver of the Indian economy, with companies like HCLTech leading the charge in digital transformation and emerging technologies. The demand for IT services is expected to remain strong in the coming years, driven by the increasing adoption of cloud computing, artificial intelligence, and automation.
Valuation and Investor Sentiment
HCLTech’s current market capitalization stands at ₹4,83,941.46 crore, making it one of the largest IT services companies in India. The stock trades at a P/E ratio of 30.82 and a P/B ratio of 7.09, indicating that it is fairly valued compared to its peers.
Investor sentiment towards HCLTech remains positive, with the stock having gained 13.29% over the past month and 25.56% in the last three months. The company’s consistent dividend payouts, strong financial performance, and focus on emerging technologies have made it an attractive investment option for long-term investors.
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