Market Performance
HCL Technologies Ltd reported its financial results for the fourth quarter of FY25 on April 22, 2025. The company also announced an interim dividend for the upcoming fiscal year.
Quarterly Financial Performance
Revenue
HCL Technologies posted revenue from operations of ₹30,246 crore in Q4 FY25, reflecting a 6% year-on-year (YoY) increase. Compared to the previous quarter, revenue saw a 1% sequential rise.
EBIT
Earnings before interest and taxes (EBIT) rose 8% YoY to ₹5,442 crore in the fourth quarter. However, it marked a 6% decline when compared quarter-on-quarter (QoQ).
EBIT Margins
EBIT margins improved by 34 basis points YoY, standing at 17.9% for the quarter.
Net Profits
The company’s net profit for the quarter came in at ₹4,307 crore, up 8% YoY from ₹3,986 crore in the corresponding quarter of the previous year. On a QoQ basis, profit declined 6%.
Annual Financial Highlights (FY25)
- Revenue: ₹1.17 lakh crore, an increase of 6% YoY
- Constant Currency Revenue Growth: 4.7% YoY
- Net Profit: ₹17,390 crore, registering an 11% YoY growth
Operational Highlights
- The services revenue increased 0.7% QoQ and 2.7% YoY in constant currency terms.
- Digital business revenue showed a 12.6% YoY rise in constant currency.
- Total Contract Value (TCV) for new deals was recorded at $3 billion, attributed to AI-led initiatives and a newly integrated go-to-market (GTM) structure.
Dividend Announcement
The Board of Directors approved an interim dividend of ₹18 per share for the financial year 2025-26.
- Record date: April 28, 2025
- Payment date: May 6, 2025
Workforce Overview
As of the end of FY25:
- Total headcount: 223,420
- Net addition in Q4: 2,665 employees
- Freshers added in Q4: 1,805
- Last Twelve Months (LTM) Attrition Rate: 13% (up from 12.4% YoY)
Guidance for FY26
- Revenue Growth (CC terms): Projected between 2% to 5% YoY
- Services Revenue Growth (CC terms): Also forecasted between 2% to 5% YoY
- EBIT Margin Guidance: Estimated at 18-19%
Summary
HCL Technologies concluded FY25 with consistent financial and operational growth. The company saw steady improvements in revenue and profitability while maintaining a robust workforce expansion. With a focus on digital transformation and AI-driven solutions, it secured significant contract wins during the quarter. The declaration of an interim dividend reflects its ongoing commitment to shareholder value.
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