This IT stock declares Q1FY24 results: Acquires 100 per cent stake in ASAP Group and announces interim dividend!
The stock has witnessed significant buying activity as it has surged more than 78 per cent in the last three year.
The Sensex and Nifty both ended the trading session with gains of 0.25 per cent and 0.15 per cent respectively.
HCL Technologies Limited is a top global IT services company and one of the top five in India. With a focus on transformational outsourcing, it offers a diverse range of services including software solutions, infrastructure management, engineering, R&D, and BPO across various industries. Leveraging its extensive offshore infrastructure and global presence, it delivers multi-service solutions worldwide.
On July 12, 2023, HCL Technologies Ltd has released its Q1FY23 results, revealing certain figures worth noting. The company reported revenue from operations at Rs 26,296 crore, witnessing a slight decline of 1.2 per cent quarter-on-quarter (QoQ), but a substantial increase of 12.1 per cent year-on-year (YoY). HCL Tech's service revenue also experienced a marginal QoQ decline of 1.1 per cent, while showing a respectable YoY increase of 7.1 per cent on a constant currency basis.
The EBIT stood at Rs 4460 crore, reflecting a QoQ decrease of 7.85 per cent, yet recording a robust YoY growth of 11.7 per cent. Similarly, the net income was reported at Rs 3534 crore, indicating a QoQ decline of 11.3 per cent but a YoY growth of 7.6 per cent.
These results provide insight into the company's financial performance, showcasing a combination of fluctuations and positive YoY growth figures.
Additionally, HCL Technologies Ltd has announced an Interim dividend of Rs 10 per share of Rs 2 each for the Financial Year 2023-24.
The Record date for the payment of this interim dividend has been set as July 20, 2023, and has been confirmed by the Board of Directors. Shareholders will receive the interim dividend on August 1, 2023. This decision reflects the company's commitment to providing returns to its shareholders during the specified financial year.
Adding to the list, HCL Technologies has successfully acquired a 100 per cent equity stake in ASAP Group, a prominent German automotive engineering services provider. This strategic acquisition will enable HCL Tech to strengthen its presence in key areas such as autonomous driving, e-mobility, and connectivity.
It will also facilitate the company's expansion into important automotive markets across Europe, the Americas, and Japan. ASAP Group, founded in 2010 and headquartered in Ingolstadt, Germany, specializes in cutting-edge automotive technologies. The company collaborates with leading automotive original equipment manufacturers (OEMs) and tier-1 suppliers in Germany, offering a comprehensive services portfolio that includes electrics/electronics, software, consulting, service testing and validation, and vehicle development.
With over 1,600 employees and nine locations in Germany, ASAP Group brings significant expertise and resources to the HCL Tech ecosystem.
Hari Sadarahalli, corporate vice president, engineering and R&D services, HCL Tech said, "Core engineering is at the heart of HCL Tech's DNA and truly differentiates our services portfolio. ASAP has developed some exciting capabilities in automotive engineering, and we share their vision for future of mobility. This agreement will enable us to scale these capabilities and innovations across our global network."
"This Investment also reinforces our commitment to Germany, which is a focus market for us. We will continue to nurture local talent and innovation ecosystem to unlock their potential," he added.
Michael Neisen, CEO of the ASAP Group added, "We are delighted to align our growth journey with HCL Tech's purpose of bringing together the best of technology and people to supercharge progress for all stakeholders. We are confident that the combination of HCL Tech and ASAP's engineering and technology performance will bring best-in-class advantages to the automotive industry worldwide."
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Today, the shares of HCL Technologies plunged 0.08 per cent. The 52-week high and low are Rs 1202.70 per share and Rs 875.65 per share, respectively on BSE.
The stock has witnessed significant buying activity as it has surged more than 78 per cent in the last three year. investors to a keep close eye on this trending stock.
This Small-Cap consumer electronics multibagger stock has promising prospects to achieve success in the future.