HCLTech Posts 20.4% Profit Rise Amid GenAI Adoption and Operational Excellence

IT services giant HCLTech reported a 20.4% increase in consolidated net profit to Rs 4,257 crore for Q1 FY25, buoyed by GenAI diversification and strong operational execution. The company remains optimistic about achieving its 3-5% revenue growth guidance for the fiscal year, despite divestments impacting certain sectors.

IT services company HCLTech on Friday posted a 20.4 per cent rise in consolidated net profit to Rs 4,257 crore for the June-ended quarter, driven by GenAI diversification and robust operational execution.

For Q1 FY25, HCLTech's revenue reached Rs 28,057 crore, marking a 6.6 per cent year-on-year increase but a 1.6 per cent sequential decline. CEO and MD C Vijayakumar highlighted that the quarter outperformed expectations despite being seasonally slow, affirming confidence in hitting the annual growth target of 3-5 per cent.

The Noida-based firm's full-year guidance remains steady, bolstered by client investments in GenAI and emerging technologies. Despite State Street joint venture divestments, HCLTech expects to see revenue growth across all geographies and verticals, excluding financial services.

HCLTech Chairperson Roshni Nadar Malhotra emphasized the company's commitment to sustainable and responsible business practices while leveraging GenAI for future opportunities. The firm plans to hire around 10,000 professionals this year, despite a sequential headcount drop of 3.6 per cent. Regional and sectoral performance varied, with telecommunications-media and retail-CPG verticals showing strong growth, while financial services experienced a slight decline. HCLTech announced an interim dividend of Rs 12 per equity share for 2024-25.