Mumbai, October 12 (IANS). HCL Technologies on Monday announced that its consolidated net profit for the second quarter of FY 2027 (July-September period) increased by 21.2 percent year-on-year to Rs 5,132 crore. This growth was driven by stable demand for services, large deals and growing demand for Artificial Intelligence (AI) based solutions.
The company said in its exchange filing that its net profit on quarterly basis has increased by 11 percent from Rs 4,626 crore in the previous quarter.
The IT major has also raised the lower bound of its revenue growth estimate for FY 2027 and declared an interim dividend of Rs 12 per share.
The Noida-headquartered IT services company reported revenue from operations at Rs 35,620 crore in the September quarter, up 3 per cent from Rs 34,579 crore in the June quarter. The company's revenue increased by 11.5 percent on an annual basis.
The company's operating performance also improved during the quarter with EBIT margin expanding to 18.2 per cent. Margins improved by 131 basis points quarter-on-quarter and 71 basis points year-on-year driven by operational efficiency and growth across business segments.
A major achievement of the quarter was the continued growth in business related to Artificial Intelligence. HCLTech's advanced AI revenue stood at $219 million. This marked an increase of 28.4 percent compared to the previous quarter and 78 percent compared to the same period last year.
Expressing confidence about business demand, the company has revised its revenue growth estimate for financial year 2027 to 2.5-4 percent. Earlier this estimate was 1-4 percent. However, the company has maintained its operating margin forecast of 17.5-18.5 per cent for the full financial year.
The company also had a strong performance in terms of new deals during the quarter. Net order bookings from new deals stood at $3.24 billion, which also included a large AI contract from Mercedes-Benz worth $1.14 billion. Total new order bookings increased 27 percent year-on-year to approximately $3.3 billion, taking order bookings to a record high in the first half of the fiscal year.
On the company's performance, HCLTech Chief Executive Officer (CEO) and Managing Director C. Vijayakumar said that the company has delivered a strong quarterly performance. Growth was recorded across various geographies and industries, while advanced AI solutions continued to receive good response from customers.
He said, “Our AI solutions are proving to be in line with customer needs. This gives the company confidence in its growth prospects.”
Roshni Nadar Malhotra, Chairperson, HCLTech, said that the rapid growth in Advanced AI revenues validates the company's strategy and investments made at various levels of AI technology.
Nadar said, “The rapid growth in Advanced AI revenues validates our business strategy. Through strategic partnerships and continued investment across the spectrum of AI technology, HCLTech is strongly positioned to become a trusted technology partner for enterprises and governments globally,” Nadar said.
–IANS
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