About the company:
HCL Technologies Limited (HCLTech) is a leading Indian multinational IT services and consulting company, headquartered in Noida, India. Founded in 1976, it provides digital transformation, cloud computing, cybersecurity, AI, and engineering services to clients across banking, healthcare, manufacturing, telecom, and retail industries. HCLTech operates in over 50 countries, with a strong presence in North America, Europe, and Asia-Pacific. The company is known for its product innovation, enterprise solutions, and IT infrastructure services, positioning itself as a key player in the global technology sector.
Business Segment Performance
IT & Business Services: +1.5% QoQ, +5.8% YoY
Engineering & R&D Services: +5.4% QoQ, +1.1% YoY
HCL Software: 18.7% sequential growth, but YoY decline due to renewal delays
Geographies Performance:
Americas: +6.2% YoY, +1.9% QoQ
Europe: +2.6% YoY, +3.5% QoQ
Rest of the World: Flat QoQ, +2.9% YoY
Key Business Updates
AI & GenAI Adoption:
AI-driven cloud migration, data analytics, and automation projects growing.
Agentic AI expected to accelerate enterprise transformation.
Multiple AI-enabled wins in finance, retail, and telecom sectors.
Large Deals & Client Growth:
12 new deals won (7 in services, 5 in software).
2 new $100M+ clients, 4 new $50M+ clients.
Sector-Specific Performance:
Retail & Consumer Packaged Goods (CPG): +13.7% QoQ growth (due to a large project completion).
Financial Services: Increased cloud adoption & AI-based risk assessment solutions.
Telecom & Media: +4% QoQ, driven by HPE CTG acquisition integration.
Strategic Initiatives & Future Outlook
Guidance for FY25:
Revenue Growth: 4.5%–5.0% YoY (constant currency).
EBIT Margin: 18%–19% (unchanged).
Capex & Cash Flow:
Net Cash: $3.24 billion, highest-ever EBIT & net income.
Dividend Declared: ₹12 per share + ₹6 special dividend (for 25 years of listing).
Hiring & Attrition:
Employee Strength: 220,755 (+2,134 net addition).
Attrition Rate: 13.2% (slightly higher due to demand pickup).
Here is HCL Technologies’ financial performance for the last three quarters (Q3FY25, Q2FY25, and Q1FY25)
| Metric | Q3FY25 | Q2FY25 | Q1FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | ₹29,380 Cr | ₹28,330 Cr | ₹27,650 Cr |
| Revenue Growth (QoQ, CC) | +3.8% | +2.4% | +1.5% |
| EBITDA Margin | 19.5% | 18.6% | 18.2% |
| EBIT (₹ Cr) | ₹7,031 Cr | ₹6,720 Cr | ₹6,480 Cr |
| EBIT Margin | 18.8% | 18.2% | 17.9% |
| Net Income (₹ Cr) | ₹4,534 Cr | ₹4,230 Cr | ₹4,120 Cr |
| Net Margin | 15.4% | 14.8% | 14.7% |
| Total Contract Value (TCV) (₹ Cr) | ₹17,475 Cr | ₹16,200 Cr | ₹15,370 Cr |
| Annual Contract Value (ACV) Growth (YoY) | +23% | +21% | +18% |
| Employee Headcount | 220,755 | 218,621 | 217,400 |
| Attrition Rate | 13.2% | 12.5% | 12.1% |
| Net Cash (₹ Cr) | ₹27,000 Cr | ₹25,875 Cr | ₹24,600 Cr |
| Dividend Declared (₹/share) | ₹18 (₹12 regular + ₹6 special) | ₹12 | ₹10 |
Recent updates:
Highlights from last con call:
Financial Performance Highlights
Revenue: $3.53 billion (+3.8% QoQ, +4.1% YoY in constant currency)
EBITDA Margin: 19.5% (+93 bps QoQ)
Net Income: $544 million (15.4% of revenue)
Services Revenue: $3.15 billion (+2.2% QoQ, +4.9% YoY)
Software Revenue: $400 million (+18.7% QoQ, -2.1% YoY)
Annual Contract Value (ACV) Growth: +23% YoY, +9% QoQ
Total Contract Value (TCV) for Q3: $2.1 billion