HCL Technologies reported a 72 per cent decline in profit in the January-March quarter of the financial year 2020-21, at Rs 1,102 crore, compared to Rs 3,969 crore in the October-December quarter, attributable to shareholders of the company. The company’s profit declined on the back of higher tax expense during the fourth quarter. According to a regulatory filing by the software services company to the BSE on Friday, the revenue from operations in the fourth quarter of fiscal 2020-21 rose 1.8 per cent quarter-on-quarter at Rs 19,641 crore, compared to Rs 19,302 crore in the preceding October-December quarter. (Also Read: HCL Tech’s Third Quarter Profit Surges Nearly 27% to ₹ 3,982 Crore )
HCL Technologies’ total tax expense in the January-March quarter stood at Rs 2,256 crore, compared to Rs 502 crore in the preceding December quarter of the financial year 2020-21. HCL Technologies said in a statement that the company’s revenue is expected to grow in double digits in constant currency for the financial year 2021-22. The operating profit margin or EBIT margin is expected to be between 19 per cent and 21 per cent for fiscal 2021-22.
The company’s revenue from operations went up 5.7 per cent year-on-year at Rs 19,641 crore, compared to Rs 18,587 crore in the corresponding period last year. The company’s net income for the quarter stood at Rs 2,962 crore, registering a decline of 25.6 per cent quarter-on-quarter and a fall of 6.1 per cent year-on-year.
In the third quarter of the financial year 2020-21, HCL Tech reported a 26.7 per cent rise in consolidated profit Rs 3,982 crore, compared to Rs 3,142 crore in the preceding July-September quarter. On Friday, HCL Technologies settled 0.56 per cent lower at Rs 955.80 apiece on the BSE, ahead of declaring the fourth-quarter earnings.