Business

HCL Technologies has announced its financial results for the fourth quarter of fiscal year 2025, providing insights into the company's performance and outlook.

The company reported a consolidated net profit of ₹3,986 crore for Q4 FY25, reflecting a marginal increase from ₹3,983 crore in the same period last year. Revenue for the quarter stood at ₹28,499 crore, marking a 7% year-on-year growth compared to ₹26,606 crore in Q4 FY24. However, the EBIT margin declined to 17.6% from 19.8% in the previous quarter, attributed to increased wage costs and project transitions.

IIE DIGITAL DESK : HCL Technologies declared an interim dividend of ₹18 per equity share for the financial year 2024-25. This marks the 85th consecutive quarter of dividend distribution by the company, underscoring its commitment to returning value to shareholders.

 For the fiscal year 2024-25, HCL Technologies reported a revenue of ₹1,09,913 crore, an 8.3% increase from the previous year. Net income for the year stood at ₹15,702 crore, reflecting a 5.7% growth. The company also achieved an operating cash flow/net income ratio of 143% and a free cash flow/net income ratio of 136%, indicating strong cash generation capabilities.

Looking ahead, HCL Technologies has provided a revenue growth guidance of 3% to 5% for FY26. The company remains optimistic about the adoption of AI and its potential to drive global enterprise technology spending. CEO C. Vijayakumar emphasized the company's readiness to capitalize on AI-led propositions, its global delivery model, and the balanced mix of technology services and products.

Following the earnings announcement, HCL Technologies' shares closed 1.8% lower at ₹1,477 on the Bombay Stock Exchange. Over the past six months, the stock has declined by 19%, and year-to-date, it has fallen by 23%. Despite these declines, the company continues to maintain a strong dividend payout record, with the interim dividend marking the 85th consecutive quarter of dividend distribution.

HCL Technologies' Q4 FY25 results indicate steady growth and a commitment to shareholder returns. While the company faces challenges in the current market environment, its strategic focus on AI and robust financial position position it well for future opportunities. Investors will be keenly watching the company's performance in the upcoming quarters to assess its ability to navigate industry dynamics and deliver sustained growth.