HCL Thumps TCS & Infosys In Q1 Of FY25 Indian IT giant HCLTechnologies posted a 20.46 % year-on-year (YoY) jump in net profit, whereas net profit of TCS & Infosys stood at 8.7 % and 7%

Indian IT majors have started the first quarter of FY 2025 with all-round growth across industries and markets. Net profit of HCL Technologies, Tata Consultancy Services (TCS) and Infosys have recorded a substantial growth in year-on-year (YoY) performance. In the Q1 of FY2025, HCL Technologies clocked the highest net profit on the back of strong new deals.

HCL Technologies

Indian IT giant HCLTechnologies posted a 20.46 per cent year-on-year (YoY) jump in net profit at INR 4,257 crore for the June quarter compared with INR 3,534 crore in the same quarter last year. During the quarter under review, revenue from operations was up 6.70 per cent YoY at INR 28,057 crore from INR 26,296 crore in the corresponding quarter last year.

HCLTech's new deal wins stood at $1.96 billion, compared with $1.56 billion a year earlier. The company announced a deal expansion with a value of $278 million over 7.5 years with German bank apoBank, as well as a five-year deal with State Bank of India.

"We are pleased to report another quarter of industry leading performance with 5.6 per cent YoY revenue growth on a constant currency basis. Our Q1 revenue and EBIT performance was slightly better than our expectations. We clocked in $2B TCV of new business Bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies," said C Vijayakumar, CEO & MD, HCLTech.

TCS

For Q1, TCS net profit grew 8.7 per cent year-on-year (Y-o-Y) to INR 12,040 crore, but fell 3.1 per cent sequentially. Revenue increased 5.4 per cent Y-o-Y and 2.2 per cent sequentially to INR 62,613 crore. Margins for the quarter were 24.7 per cent, a 1.5 per cent Y-o-Y increase. The growth has been recorded, despite the annual wage increments in this quarter.

"I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets. We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort in France, IoT lab in the US and expanding our delivery centers in Latin America, Canada and Europe," said K Krithivasan, CEO,TCS.

Samir Seksaria, CFO, TCS, said that inspite of the usual impact of the annual wage increments in this quarter, we have delivered strong operating margin performance, validating our efforts towards operational excellence. We remain focused on making the right investments in R&I and talent, strengthening our superior return ratios and creating long term value for our stakeholders.

Infosys

IT major Infosys reported a 7 per cent rise in first quarter net profit, the consolidated net profit of Infosys increased to INR 6,368 crore in the April-June quarter, compared with INR 5,945 crore in the same period a year ago. For the current fiscal year, it raised revenue growth guidance to 3 per cent to 4 per cent in constant currency terms and guidance for operating margin stood at 20-22 per cent for FY2025, the developments were clocked on the back of a focused approach for generative AI for enterprises which helped Infosys in maintaining strong traction with clients.

"We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution," said Salil Parekh, CEO and MD.

"Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion program, is reflected in the all-round improvement in key operating metrices leading to 1.0 percent growth in operating margin in Q1," said Jayesh Sanghrajka, CFO.