📝 Introduction
HCL Technologies reported a robust set of numbers for Q4 FY25, reflecting steady revenue growth and resilient profitability. The IT major posted a YoY increase in net profit and a healthy operating margin, driven by strong deal wins and improved operational efficiency. The company continues to maintain its position among the top Indian IT players, supported by a diversified services portfolio and strategic investments.
💰 Financial Highlights – Q4 FY25 (March 2025)
| Metric | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
| Revenue | 30,246 | 29,890 | 28,499 | 1.20% | 6.10% |
| Expenses | 23,764 | 23,030 | 22,382 | 3.20% | 6.20% |
| Operating Profit | 6,482 | 6,860 | 6,117 | -5.50% | 5.90% |
| PBT | 5,735 | 6,132 | 5,269 | -6.50% | 8.80% |
| Net Profit | 4,309 | 4,594 | 3,995 | -6.20% | 7.90% |
💸 Dividend Announcement
HCL Technologies announced a final dividend of ₹18 per share for FY25. This is in line with its consistent payout policy and reflects strong cash flow generation. The record date and payment schedule will be notified in due course.
📐 Key Financial Ratios
| Ratio | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
| Operating Margin (%) | 21% | 23% | 21% | ↓ 200 bps | Flat |
| Net Profit Margin (%) | 14.30% | 15.40% | 14.00% | ↓ 110 bps | +30 bps |
| EPS (₹) | 15.88 | 16.92 | 14.69 | -6.10% | 8.10% |
📊 Peer Comparison
| Company | CMP (₹) | Market Cap (₹ Cr) | P/E | P/B | ROE (%) | ROCE (%) | 52W High (₹) | 52W Low (₹) |
|---|---|---|---|---|---|---|---|---|
| TCS | 3529.45 | 12,76,985.93 | 26.36 | 13.51 | 52.38 | 64.63 | 4592.25 | 3056.05 |
| Infosys | 1572.85 | 6,53,345.37 | 24.62 | 6.83 | 28.83 | 37.5 | 2006.8 | 1307 |
| HCL Tech | 1653.9 | 4,48,813.07 | 25.76 | 6.41 | 25.23 | 31.88 | 2012.2 | 1235 |
| Wipro | 252.1 | 2,64,114.76 | 20.15 | 3.2 | 16.74 | 19.67 | 324.6 | 208.4 |
| TechM | 1587.5 | 1,55,427.45 | 36.58 | 5.67 | 15.74 | 20.08 | 1807.7 | 1193.65 |
| LTIMindtree | 5054.5 | 1,49,789.86 | 32.6 | 6.63 | 21.53 | 27.63 | 6767.95 | 3802 |
| Persistent | 5739.25 | 89,446.19 | 63.95 | 14.01 | 24.83 | 31.39 | 6788.9 | 3232.05 |
🧭 Strategic Developments
- Digital & Cloud Services: Continued focus on expanding digital transformation and cloud capabilities through strategic alliances.
- Large Deal Wins: Secured multiple large, multi-year contracts across BFSI, manufacturing, and healthcare.
- Talent Strategy: Employee strength stabilized with productivity and automation initiatives improving margins.
✅ Positives & Negatives
👍 Positives This Quarter
- Healthy revenue growth (YoY +6.1%)
- Continued strong performance in digital and cloud verticals
- Dividend payout sustains investor confidence
- Robust deal pipeline supports future visibility
👎 Negatives / Challenges
- Margins contracted QoQ due to higher operating expenses
- Sequential decline in Net Profit
- Increased competition from global IT majors could pressure pricing
📉 Market Reaction & Street View
- Stock Movement: HCL Tech stock saw modest fluctuations post-results. Price has held near ₹1650.
- Brokerage Views:
- ICICI Securities: Maintains Buy, target ₹1850
- Motilal Oswal: Reiterates Neutral, target ₹1700
- CLSA: Outperform, raised target to ₹1800
- Investor sentiment remains moderately positive, backed by dividend and visibility in deal wins.
🔭 Final Outlook
HCL Technologies has delivered a solid performance in Q4 FY25, marked by strong topline growth and consistent profitability. While margin pressures remain a watch point, the company’s strategic investments and large deal wins keep it on track for sustainable growth. Long-term prospects remain favorable with focus on digital, automation, and cloud.
🔗 External Links
For detailed financials and official updates, visit: HCL Technologies Investor Relations
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.