HCLTech Q1 Earnings: Profit Drops by 10% to ₹3,843 Cr, While Revenue Shows 8% Growth

HCLTech Q1 FY2025 Results – Profit Takes a Hit, Revenue Shows Healthy Rise | Live Breakdown

HCL Technologies, one of India’s top IT services companies, has shared its financial results for the first quarter of FY2025. While the company’s net profit has come down by 10%, it has still managed to post an 8% rise in revenue.

Let’s break down the numbers and major announcements in this point-wise report.

 1. Net Profit Declines by 10% YoY

• HCLTech has posted a net profit of ₹3,843 crore for Q1 FY2025.

• This is a 10% drop compared to ₹4,280 crore in the same quarter last year.

• The dip in profit has slightly disappointed investors and market analysts.

 2. Revenue Grows by 8% Despite Profit Fall

• Despite lower profits, the company’s total revenue has grown by 8% year-over-year.

• Q1 revenue stands at ₹28,883 crore as compared to ₹26,296 crore in Q1 FY2024.

• This shows that the overall business demand remains strong, especially in digital services.

 3. Constant Currency Growth Highlights Positive Momentum

• HCLTech reported a constant currency revenue growth of 5.4% quarter-on-quarter.

• This is seen as a positive indicator that client deals and global demand have been stable.

• The company remains hopeful about continued growth momentum in the coming quarters.

 4. Software and Services Drive Strong Revenue

• The IT and business services segment was the main revenue generator, contributing about 72% of the total revenue.

• Software products and platforms added about 20% to the total earnings.

• Engineering and R&D services accounted for the remaining share.

 5. Strong Deal Pipeline Remains Intact

• HCLTech signed 14 large deals during the quarter, spread across different sectors.

• These include clients from banking, healthcare, manufacturing, and telecom.

• The total contract value (TCV) of deals signed was worth $2.1 billion, showing strong customer trust.

 6. EBIT Margin Sees a Slight Decline

• The EBIT (Earnings Before Interest and Tax) margin for Q1 FY2025 stood at 16.6%.

• This is a slight decline from 17% in the same quarter last year.

• Higher employee costs and increased operational expenses have affected margin growth.

 7. Attrition Rate Drops – A Positive for Workforce Stability

• The company reported a decline in attrition rate to 12.7%, compared to over 14% in the previous quarter.

• This shows improved employee satisfaction and better retention efforts by the HR team.

• HCLTech also added over 2,000 new employees in Q1, bringing total headcount to 228,000+.

 8. HCLTech CEO Comments on Results

• CEO C Vijayakumar said, “We have had a good start to FY2025. Revenue has grown, and our deal pipeline remains strong. We are confident about our long-term growth strategy.”

• He also added that cost optimization measures will be a key focus in the upcoming quarters.

 9. Company Continues to Focus on AI and Cloud Services

• HCLTech is investing heavily in Generative AI, cloud migration, and cybersecurity services.

• These high-growth areas are expected to drive future revenue and help improve margins.

• Several enterprise clients have already signed up for pilot AI projects.

 10. Dividend Declared – ₹12 Per Share

• Along with its Q1 results, HCLTech announced a dividend of ₹12 per share.

• The record date for the dividend is July 21, 2025, and it will be paid out soon after.

• This move will benefit long-term investors and reward shareholders.

 11. Impact on Stock Market – Mixed Reactions

• After the results were announced, HCLTech shares saw mild movement on the stock exchange.

• The drop in profit concerned a few investors, but the revenue growth gave confidence.

• Market experts expect the stock to remain range-bound in the short term.

 12. Comparison with Other IT Giants

• Compared to TCS and Infosys, HCLTech’s profit dip is slightly sharper, but its revenue growth is competitive.

• The IT sector as a whole is facing challenges due to global macroeconomic uncertainty and tight client budgets.

• However, HCLTech has managed to maintain a healthy deal pipeline unlike some peers.

 13. Segment-wise Performance Overview

• IT and Business Services: Grew by 7.5% YoY

• Engineering and R&D Services: Increased by 5.9%

• Software Products & Platforms: Up by 9.8%

• This balanced growth across business units supports long-term stability.

 14. Regional Performance – North America Leads

• North America remained the largest contributor to revenue with over 60% share.

• Europe and Asia-Pacific also showed growth but at a slower pace.

• Indian market contribution remained steady but small in comparison.

 15. Future Outlook for FY2025

• The company expects revenue to grow in the range of 6-8% for FY2025.

• Profit margins may remain slightly under pressure due to wage hikes and inflation.

• However, new digital deals and AI-related services are expected to boost overall growth.

 16. Analyst Opinions on HCLTech Results

• Experts say the numbers are a mixed bag – strong revenues but weaker margins.

• They recommend a “hold” strategy on the stock due to global headwinds.

• Long-term investors are advised to focus on HCLTech’s leadership in digital transformation.

 17. Clients Continue Trusting HCLTech’s Delivery Model

• Despite lower profits, client satisfaction remains high due to timely delivery and quality work.

• Repeat business and long-term contracts make up a majority of revenue.

• The company’s digital-first approach is being appreciated globally.

 18. Innovation and Technology Centers Expanded

• HCLTech launched two new innovation labs in the US and Europe in Q1.

• These centers are focused on automation, cloud-native development, and AI integration.

• The expansion aligns with the company’s commitment to global innovation.

 19. ESG and Sustainability Updates

• HCLTech has published its latest Sustainability Report, focusing on carbon reduction and gender diversity.

• The company aims to be net-zero by 2040 and continues to support social initiatives in education and digital literacy.

 20. Final Thoughts: Growth Continues Amid Margin Pressure

• Though profit has taken a hit, HCLTech’s top-line growth and deal wins are positive signs.

• The IT giant seems focused on future-ready investments while maintaining shareholder value.

• Investors and tech enthusiasts should watch Q2 performance closely for margin recovery signals.

Conclusion

HCLTech’s Q1 FY2025 results present a mixed picture — a noticeable drop in profits but a strong increase in revenue and deal activity. With its eyes set on AI, cloud, and automation, the company continues to be a key player in the global IT space.

Stay tuned for more updates on Indian IT earnings and market insights!

Let me know if you’d like this turned into a YouTube script, LinkedIn summary, or Hindi translation.