In a major development, HCL Tech reported net profit of Rs 3,154 crore for the quarter ended March 31, 2020. The net profit is better than expected from the software major.
HCL Tech shares were up 2% in a BSE that was down 0.5%. Its board recommended a final dividend of Rs 2 per equity share.
Revenue at Rs 18,590 crore was up 16.3% year on year. HCL Tech‘s $1.8 billion acquisition of business relating to select IBM products was announced on December 7th, 2018 and consummated in the Q2 FY 20.
The revenue was flat at $2,543 million sequentially but up 11.7% year on year. In constant currency terms, revenue was up 0.8% quarter on quarter and 13.5% year on year.
In Q4, HCL Tech reported operating margin of 20.9% while for FY20 at 19.6%.
Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies Ltd said “The world is going through a significant shift, and adaptability and innovation are the key to stay relevant. Forward-thinking organizations will drive this from the front while ensuring that innovations driven by them benefit both internal and external stakeholders and the larger environment and communities, especially in these times of unprecedented challenges.”