HCLTech has announced a salary hike for its employees, effective October, following a robust performance in Q2. The company reported an 11% year-on-year increase in net profit, reaching ₹4,235 crore for the quarter.
Chief People Officer Ramachandran Sundararajan stated that employees will receive a 7% salary hike, with top performers seeing increases of up to 12-15%.
HCLTech’s strong quarter saw Total Contract Value (TCV) of new deals worth $2.2 billion and a revenue growth of 6.2% year-on-year in constant currency (CC). The company has revised its FY25 revenue growth guidance to 3.5%-5% in CC and maintained its EBIT margin guidance at 18%-19%. Additionally, a dividend of ₹12 per share was declared.
CEO & Managing Director C Vijayakumar highlighted the quarter’s 1.6% sequential revenue growth in CC and an EBIT margin of 18.6%. The HCLSoftware segment delivered a 9.4% year-on-year growth, driven by demand in Data & AI, Digital Engineering, and SAP migration. The company’s AI offerings like AI Force and AI Foundry are expected to be key drivers of growth and innovation.
Revenue in CC rose 6.2% year-on-year, with dollar revenue reaching $3.4 billion, a 6.8% increase. Services revenue grew 5.9% year-on-year in CC, while Digital revenue increased by 7.8% in CC. Engineering and R&D Services grew by 4.3% year-on-year in CC.
The Americas led the geographical growth with a 7.5% increase in revenue in CC, followed by Europe at 4.2%. Among industry verticals, Telecommunications, Media, and Entertainment saw the highest growth at 61.2% year-on-year in CC, followed by Manufacturing at 7.1% and Retail & CPG at 6.2%.
Shiv Walia, Chief Financial Officer at HCLTech, noted the company’s strong financial results, with INR revenue reaching ₹28,862 crore—a 2.9% sequential increase and an 8.2% year-on-year rise. EBIT margins improved to 18.6%, up by 149 basis points sequentially.