HCL Technologies (HCLTech), a leading global technology company, recently released its financial results for the second quarter of fiscal year 2025 (Q2 FY25).
The company showcased robust growth across various parameters, demonstrating resilience and adaptability in a dynamic business environment.
HCLTech Q2 FY25 Results: Revenue Breakdown
In Indian Rupees (INR), HCLTech’s Q2 FY25 revenue stood at ₹28,862 Crores, reflecting an impressive 8.2% YoY growth compared to the same period last year.
In constant currency (CC), revenue increased by 6.2% YoY, emphasizing the company’s consistent performance. In US dollars (USD), revenue reached $3,445 million, marking a 6.8% YoY growth.
Earnings Before Interest and Taxes (EBIT) amounted to ₹5,362 Crores, representing 18.6% of revenue, an 8.7% YoY increase.
Digital services contributed significantly, accounting for 38.5% of HCLTech’s overall services revenue. The company reported a strong 7.8% YoY growth in digital revenue, highlighting its agility in meeting clients’ evolving needs.
HCLTech’s software business performed well, with a 9.4% YoY growth in revenue (constant currency) and an annual recurring revenue (ARR) of $1.05 billion.
Q2 FY24 vs. Q2 FY25: Net profit surged by 11% YoY, reaching ₹4,235 Crores in Q2 FY25. Revenue from operations increased by 8.2% YoY, totaling ₹28,862 Crores.
Q1 FY25 vs. Q2 FY25: While Q1 FY25 saw a net profit rise of 20% YoY to ₹4,257 Crores, Q2 FY25 maintained steady growth. Revenue from operations in Q2 FY25 was ₹28,057 Crores, down slightly from Q1 but still reflecting a healthy 6.7% YoY growth.
Headcount and Attrition
HCLTech continued its strategic focus on optimizing headcount. During Q2 FY25, the company reduced its workforce by 780 employees, a slower pace compared to previous quarters.
In Q1 FY25, HCLTech’s headcount decreased by 8,080 employees. However, it’s essential to consider that approximately 7,398 employees were lost due to the divestment of the firm, State Street.
However, HCLTech also hired 2,932 freshers during the same period, indicating a balanced approach to talent management. Attrition (last twelve months) stood at 12.9%, reflecting efforts to retain skilled professionals.
HCLTech Q2 FY25 Results: Geographical and Vertical Performance
The Americas region led revenue growth, with a remarkable 7.5% YoY increase (CC). Europe followed suit, growing at 4.2% YoY (CC).
Telecommunications, Media, Publishing & Entertainment (TMPE) witnessed substantial growth, with a remarkable 61.2% YoY increase (CC).
Manufacturing and Retail & Consumer Packaged Goods (CPG) also contributed positively, growing at 7.1% and 6.2% YoY (CC), respectively.
HCLTech CEO’s Vision
C Vijayakumar, CEO and MD, HCLTech said, “We delivered a strong quarter with revenue growing 1.6% QoQ in constant currency and EBIT coming in at 18.6%.”
Vijayakumar added, “This growth was well distributed across verticals, geographies, and offerings.”
He further said, “HCL Software has delivered a stellar performance of 9.4% YoY this quarter and 6.4% growth in H1 FY25 in constant currency, demonstrating the increasing relevance of our products for the digital economy.”
He added, “Our pipeline is very strong, including Data & AI, Digital Engineering, SAP migration, and efficiency-led programs.”
“Our GenAI offerings like AI Force and AI Foundry are resonating very well with our clients and should be drivers of efficiency, growth, and innovation over the medium term,” stated CEO Vijayakumar.
Wrapping Up!
HCL Technologies’ Q2 FY25 results underscore its resilience, strategic focus on digital transformation, and commitment to talent management.
As the company navigates a dynamic market, its strong financial performance positions it well for future growth.
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