Q1 FY 2025 Results of HCLTech and TCS – Who’s Leading?

The giants of the Indian IT sector, Tata Consultancy Services (TCS) and HCL Technologies Ltd (HCLTech), recently released their Q1 FY 2025 results.

Q1 FY 2025 Financial Highlights of HCLTech

HCL reported revenue of ₹28,057 crore, a decrease of 1.6% quarter-on-quarter but an increase of 6.7% year-on-year. The company’s EBIT stood at ₹4,795 crores, representing 17.1% of revenue, down 4.4% QoQ and up 7.5% YoY.

During the quarter, HCLTech’s net income was ₹4,257 crore, accounting for 15.2% of revenue, showing a QoQ increase of 6.8% and a YoY rise of 20.4%.

The company declared a dividend of ₹12 per share, marking the 86th consecutive quarter of dividend payouts.

Q1 FY 2025 Financial Highlights of TCS

IN Q1 FY 2024, TCS achieved revenue of ₹62,613 crore, reflecting a year-on-year increase of 5.4%, with a 4.4% rise in constant currency. The company’s net income reached ₹12,040 crore, up 8.7% year-on-year, resulting in a net margin of 19.2%.

In Q1 FY 2024, the net profit was ₹11,074 crore, demonstrating significant growth compared to ₹12,040 crore in Q1 FY 2025.

Additionally, the company announced a dividend of ₹10 per share, with the record date set for July 20, 2024, and the payment date scheduled for August 5, 2024.

Stock Performance: HCLTech vs TCS

As of July 15, 2024, HCLTech boasts a market capitalisation of ₹4,29,233.98 crore. The stock opened at ₹1,580.00 and reached a day’s high of ₹1,636.40 by 11:47 AM on the NSE. Over the past year, HCLTech has delivered a return of 40.49%, with a 5-year compound annual growth rate (CAGR) of 24.97%.

In contrast, TCS has a market capitalisation of ₹15,23,395.75 crore. The stock opened at ₹4,235.70 and hit a high of ₹4,240.00 by 11:49 AM on the NSE. TCS reported a one-year return of 28.35% and a five-year CAGR of 14.70%.

Conclusion

Both Tata Consultancy Services and HCL Technologies showcased notable financial performance in Q1 FY 2025, reflecting the ongoing strength of the Indian IT sector. HCLTech demonstrated impressive year-on-year growth in net income and a solid dividend payout streak, while TCS reported significant revenue figures and a robust net margin.

Regarding stock performance, HCLTech’s higher recent returns and strong CAGR over five years indicate a competitive edge, whereas TCS maintains substantial market capitalisation and stable growth. Ultimately, both companies continue to play vital roles in shaping India’s IT industry landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.