Revenue and Profit Growth
Over the past six years, HCL Technologies has seen its net sales rise significantly, from ₹60,427 crore in March 2019 to ₹1,17,055 crore in March 2025. This represents a compound annual growth rate (CAGR) of approximately 13.5%, reflecting strong demand for its services and successful business expansion. The total operating income mirrors this trend, with no other operating income reported, indicating that core operations have been the primary revenue driver.
Profitability has also improved in tandem with revenue growth. The operating profit before depreciation, interest, and tax (PBDIT) excluding other income increased from ₹13,926 crore in 2019 to ₹25,504 crore in 2025. Including other income, operating profit rose to ₹27,989 crore in the latest fiscal year. Profit before tax climbed from ₹12,622 crore to ₹23,261 crore, while profit after tax advanced from ₹10,120 crore to ₹17,399 crore over the same period. Earnings per share (EPS) have correspondingly increased from ₹37.34 to ₹64.05, signalling enhanced shareholder returns.
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Cost Structure and Margins
HCL Technologies’ expenditure has risen alongside its revenue, with total expenditure excluding depreciation increasing from ₹46,501 crore in 2019 to ₹91,551 crore in 2025. Employee costs, the largest expense category, have more than doubled from ₹29,283 crore to ₹66,755 crore, reflecting workforce expansion and wage inflation. Manufacturing expenses and other costs have also increased steadily.
Despite rising costs, the company has maintained healthy operating margins. The operating profit margin excluding other income has remained relatively stable, hovering around 22% in recent years, though it has slightly declined from a peak of 26.6% in 2021. The profit after tax margin has fluctuated modestly between 14.3% and 16.8%, indicating consistent profitability amid changing market conditions.
Balance Sheet Strength and Asset Base
HCL Technologies’ total assets have grown from ₹80,589 crore in 2020 to ₹1,04,480 crore in 2025, supported by investments in fixed assets and working capital. The net block of fixed assets has remained stable around ₹33,000 crore, while current assets have increased significantly to ₹62,109 crore, driven by higher cash balances and sundry debtors.
Shareholders’ funds have expanded from ₹51,267 crore in 2020 to ₹69,655 crore in 2025, reflecting retained earnings and capital accumulation. The company’s debt levels have decreased notably, with total debt reducing from ₹5,074 crore in 2020 to ₹2,291 crore in 2025, underscoring a prudent approach to leverage and financial risk management. Book value per share has appreciated steadily, reaching ₹256.56 in the latest fiscal year.
Cash Flow and Liquidity
Cash flow from operating activities has shown a positive trend, rising from ₹13,359 crore in 2020 to ₹22,261 crore in 2025, indicating strong cash generation from core operations. Investing activities have generally involved outflows, reflecting ongoing capital expenditure and acquisitions, though there was a positive inflow in 2022. Financing activities have consistently seen outflows, primarily due to debt repayments and dividend payments.
Despite some fluctuations, the company has maintained a healthy cash and cash equivalents balance, which stood at ₹8,245 crore at the end of March 2025, providing ample liquidity to support operations and growth initiatives.
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Summary of Historical Performance
In summary, HCL Technologies has exhibited a consistent upward trajectory in financial performance over the last six years. The company’s revenue and profits have grown at a healthy pace, supported by disciplined cost management and operational efficiency. Its balance sheet reflects strong equity growth and reduced debt, while cash flow metrics indicate robust liquidity and operational cash generation. Margins have remained stable despite rising expenses, underscoring the firm’s ability to sustain profitability in a competitive environment.
These factors collectively position HCL Technologies as a reliable and fundamentally strong entity within the IT sector, with a track record of steady growth and financial prudence that should appeal to long-term investors.
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