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HCL Technologies
HCL tech is a leading global IT services company, which is rank amongst the top 5 Indian IT services company in terms of revenues. Since its inception into the global landscape after its IPO in 1999, HCL TECH has focused on transformational outsourcing and offers an integrated portfolio of services including software it solutions, remote infrastructure management, engineering and R&D services and BPO. The company leverages its extensive global offshore infrastructure and network of offices in 46 countries to provide multi service delivery in key industry verticals.
Financial Performance Of HCL Tech
The financial performance of the company for three consecutive quarters - December 2024, September 2024, and June 2024 - is summarized as follows.
In December, 2024, the total revenue was 30367Cr, while gross profit was 9273Cr. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at 7337Cr, and the net profit was 4594Cr.
In September 2024, the total revenue was slightly lower at 29318Cr, with a gross profit of 8581Cr. EBITDA during this quarter was 6825Cr, and the net profit was 4237Cr.
For June 2024, the total revenue was 29160Cr, gross profit was 8780Cr, EBITDA reached 6896Cr, and the net profit was 4259Cr.
The table below presents the data for better clarity:
Quarters | Dec 24 | Sep 24 | Jun 24 |
Total Revenue | 30,367 | 29,318 | 29,160 |
Gross Profit | 9,273 | 8,581 | 8,780 |
EBITDA | 7,337 | 6,825 | 6,896 |
Net Profit | 4,594 | 4,237 | 4,259 |
This data indicates stable financial performance across the three quarters, with consistent gross profit and slight variations in total revenue, EBITDA, and net profit.
Performance of HCL Tech
The company’s performance over the last three years is summarized below, highlighting growth in key metrics:
Sales Growth: - Over three years, sales have grown by 45%, indicating strong business performance and revenue expansion.
EBITDA Growth: - The company achieved a 22% growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), reflecting improved operational efficiency.
Net Profit Growth: - Net profit grew by 40% during this period, showcasing the company's ability to increase profitability despite market challenges.
Stock Price Growth: - The stock price experienced a 49% increase, reflecting moderate investor confidence and market performance.
This data highlights the company's steady growth across key financial metrics, driven by effective strategies and consistent performance.
The data is presented in table form below for clarity:
Metric | 3 Years |
Sales Growth | 45% |
EBITDA Growth | 22% |
Net Profit Growth | 40% |
Stock Price Growth | 49% |
Assets and Liabilities of SIEMENS
Assets
Category | Amount |
Long Term & Other Assets | ₹36,036 Cr |
Physical Assets | ₹11,453 Cr |
Inventory | ₹ 185 Cr |
Receivables | ₹25,521 Cr |
Cash & Short Term | ₹26,582 Cr |
Liabilities + Equity
Category | Amount |
Equity | ₹68,263 Cr |
Other Liabilities | ₹19,556 Cr |
Debt | ₹5,758 Cr |
Accounts Payable | ₹5,853 Cr |
Shareholding Pattern
As of September 24th, the shareholding pattern of the company reveals how ownership is distributed among different types of investors. The promoters, or company founders and major stakeholders, hold the largest share, owning 60% of the company. This large ownership gives them substantial control over the company's decisions and operations.
Foreign Institutional Investors (FIIs) own 18% of the company's shares. These are large investors, typically from overseas, such as international banks, pension funds, and mutual funds. Their stake indicates that the company has attracted significant interest from global investors.
Domestic Institutional Investors (DIIs), which include local banks, insurance companies, and other investment institutions, own 14% of the company’s shares. This shows strong local support for the company from institutional investors.
The remaining 5% of the shares are held by the public, which includes individual retail investors and other smaller shareholders. This portion is comparatively small, meaning that individual investors have less influence over the company's decisions compared to promoters and institutional investors.
Shareholding Percentage | Category |
60 | Promoters |
18 | FII |
14 | DII |
5 | Public |
Overall, the shareholding pattern highlights the dominance of the promoters in controlling the company, with institutional investors playing a significant role in ownership as well.
Market Cap
Market Capitalization: 4,92,245 Crore
This figure represents the total market value of the company's outstanding shares. It is calculated by multiplying the company's current share price by the total number of shares outstanding.
Sales in Last 12 Months: 1,15,308 Crore
This metric indicates the company's revenue generated over the past year. It provides insight into the company's sales performance and its ability to generate income.
Sector: IT-Software
This information classifies the company's industry as belonging to the IT Software sector. This categorization helps investors understand the company's competitive landscape and potential growth drivers within its specific market.
Book Value per Share: 253
Book value per share represents the company's net assets per share. It is calculated by dividing the company's total assets minus total liabilities by the total number of outstanding shares. This metric gives investors an idea of the company's intrinsic value and financial health.
The three common financial ratios used to assess a company's valuation: the Price-to-Earnings Ratio (P/E), the Price-to-Book Ratio (P/B), and the Price-to-Sales Ratio (P/S).
The P/E ratio, which is 28x in this case, measures the market value of a company's stock relative to its earnings per share. A higher P/E ratio suggests that investors are willing to pay a premium for the company's future earnings potential.
The P/B ratio, at 7x, compares the market value of a company's stock to its book value per share (assets minus liabilities). A higher P/B ratio indicates that the market values the company's intangible assets (like brand value, intellectual property) more than its tangible assets.
The P/S ratio, which is 4x, evaluates the market value of a company's stock relative to its annual revenue. A higher P/S ratio might suggest that investors expect strong future revenue growth or are willing to pay a premium for the company's market share.
Financial Ratio Of HCL Tech
1. Return on Equity (ROE): 22.32% (3-year average)
· This shows how well the company is using its equity (owner's money) to generate profits. A high ROE is a good sign of decent profitability.
2. Return on Capital Employed (ROCE): 26.80% (3-year average)
· This ratio tells us how efficiently the company is using both its debt and equity to make profits. A decent ROCE suggests the company is making good use of its resources.
3.Debt-to-Equity Ratio: 0.09x (3-year average)
· This measures the company’s debt compared to its equity. A low ratio means the company is not overly reliant on debt, which reduces financial risk.
4. Interest Coverage Ratio: 47.41x (3-year average)
· This shows how easily the company can pay its interest on debt. A high ratio indicates that the company is in a strong financial position and can easily meet its debt obligations.
hr NOTE:- this Article is only for information purpose only. We are not suggesting to buy this share..