HCL Technologies, one of India’s largest IT services firms, has made headlines with the announcement of an interim dividend of ₹12 per equity share for the financial year 2024-25. This declaration comes on the back of the company’s impressive financial results for the second quarter (Q2), showcasing solid growth in revenue and profits.
The interim dividend is payable on October 30, 2024, with the record date set for October 22, 2024. This marks a continued effort by HCL Tech to return value to its shareholders, following a steady trend of dividend distributions.
Q2 Performance at a Glance
HCL Tech’s Q2 results highlight a strong performance across various financial metrics. The company reported a consolidated net profit of ₹4,235 crore, reflecting a growth of 10.5% compared to the same period in the previous year. Revenue from operations also saw a notable increase, rising by 8.2% to ₹28,862 crore, up from ₹26,672 crore in Q2 FY 2023-24.
This growth is particularly noteworthy given the global economic uncertainty and challenges faced by the IT sector. HCL Tech’s ability to adapt and deliver consistent results underscores its resilience and strong operational framework.
Dividend Announcement: What It Means for Shareholders
The interim dividend of ₹12 per equity share is a continuation of HCL Tech’s commitment to rewarding its shareholders. Investors holding shares as of the record date, October 22, 2024, will be eligible to receive this payout, which will be credited to their accounts on or after October 30, 2024.
Dividends are a key element of HCL Tech’s capital allocation strategy, offering investors a reliable source of income in addition to potential capital appreciation. With this latest dividend, the company reinforces its status as a shareholder-friendly entity.
Key Business Highlights
1. Profit and Revenue Growth: The 10.5% increase in net profit and 8.2% rise in revenue reflect HCL Tech’s strong market position and efficient cost management. Despite challenging macroeconomic conditions, the company continues to expand its operations and drive profitability.
2. Lower Attrition Rates: One of the notable operational highlights from Q2 was the decline in HCL Tech’s attrition rate, which dropped to 12.9% from 14.2% in the same quarter last year. This improvement signals better employee retention, a key factor in maintaining productivity and continuity in service delivery.
3. Strong Share Performance: Following the announcement of its Q2 results, HCL Tech shares closed 0.89% higher at ₹1,856 on October 14, 2024. The steady rise in share price reflects investor confidence in the company’s growth trajectory and its ability to generate shareholder returns.
4. Growth Drivers: HCL Tech’s focus on digital transformation, cloud services, and engineering services continues to be key growth drivers for the company. As businesses worldwide accelerate their digital initiatives, HCL Tech is well-positioned to capitalize on these opportunities.
Looking forward, HCL Tech is expected to maintain its growth momentum, driven by strong demand for IT services globally. The company’s diversified service portfolio and strategic investments in emerging technologies should continue to fuel its expansion in the coming quarters.
With a solid Q2 performance and a generous interim dividend, HCL Tech remains an attractive option for both long-term and income-focused investors. As the IT sector continues to evolve, shareholders can expect HCL Tech to play a leading role in shaping the future of digital transformation.
Source: This article is based on information from LiveMint and MarketScreener.
Key Highlights
- HCL Tech announced an interim dividend of ₹12 per equity share, payable on October 30, 2024.
- The company reported a 10.5% increase in net profit, reaching ₹4,235 crore for Q2 FY 2024-25.
- Revenue grew by 8.2%, totaling ₹28,862 crore, driven by strong demand for IT services.
- The attrition rate dropped to 12.9%, showing improved employee retention.
