HCL Tech Q3: ₹12 Dividend Declared Amid $109M Labour Code Cost Hit

TECH

Overview

HCL Technologies reported a largely flat employee count in Q3, adding 2,852 freshers. The tech giant declared an interim dividend of ₹12 per share. Net profit dipped 3.8% due to a one-time $109 million cost from new labor code provisions, while revenue rose 6% sequentially.

HCL Technologies has posted its financial results for the third quarter, revealing a largely stable employee base with a net decline of 261 workers. The IT major welcomed 2,852 freshers during the quarter, pushing total fresher additions for the fiscal year to 10,032.

Q3 Financials and Cost Impact

Revenue saw a sequential increase of 6% to ₹33,872 crore, narrowly beating market estimates. However, net profit declined 3.8% quarter-on-quarter to ₹4,076 crore. This reduction was primarily driven by a significant one-time cost of ₹956 crore ($109 million) stemming from obligations under new labor code provisions. Chief Executive C Vijayakumar stated this is a one-time charge with minimal expected ongoing costs.

Dividend Payout and Shareholder Returns

The company's board approved an interim dividend of ₹12 per share. This payout raises the 12-month total to ₹54 per share, representing an 88.8% distribution of net income. Diluted earnings per share stood at ₹63.35 over the last 12 months, adjusted down to ₹60.70 post the labor code impact.

Employee Growth and Fresher Hiring Surge

Despite the net employee count remaining steady, the substantial addition of freshers signals a strategic push in early-career talent acquisition. This aligns with the company's earlier projections for significantly higher fresher hiring this fiscal year.

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