- HCL Technologies had a strong quarter with positive performance across all dimensions.
- Revenue grew 1% QoQ and 3.4% YoY in constant currency, with robust growth in services segments.
- The ASAP acquisition enhances capabilities in Auto Engineering and plans to expand into other geographies.
- HCL Software saw revenue growth of 3.6% YoY in constant currency and a 3.9% YoY increase in annual recurring revenue.
- Operating margins improved by 154 basis points over the last quarter due to various efficiency initiatives.
- Client count expanded in various categories, indicating broad-based relevance and market share growth.
- Record high bookings of $3.96 billion during the quarter, including a strategic partnership with Verizon Business.
- HCLTech is making significant strides in emerging areas like GenAI and Sustainability, with multiple partnerships signed.
- Pipeline remains healthy with a focus on opportunities in emerging areas.
- Attrition is decreasing, and investments in hiring freshers are showing results in improved profitability.
- HCLTech's ESG efforts are recognized with a Gold rating by EcoVadis and a commitment to a $5 million grant for climate action.
- The company expects strong growth in Q3 and Q4, despite challenges in the macroeconomic environment.
- Full-year guidance includes 4.5% to 5.5% organic growth for services in FY24.
- Net cash remains strong at $2.56 billion.
- Return on Invested Capital (ROIC) is robust, with the services ROIC at 39.4%.
- Diluted EPS has increased by 11.8% YoY.
- The company has declared an increased dividend of Rs. 12 per quarter.
- The demand environment for discretionary spend is still affected by macroeconomic challenges, but HCLTech is confident in delivering strong growth.
- HCL Technologies had a strong quarter and is confident about its pipeline and conversion of bookings.
- The company is focused on improving its margins and has seen significant improvements in DSO (Days Sales Outstanding).
- Quality of revenue is a key focus for long-term growth.
- The timing of salary increases has been deferred to October, with an estimated impact of 60-65 basis points on margins.
- HCL anticipates a strong second half of the year with factors like large deal ramp-up, Software seasonality, and continued revenue contributing to growth.
- The company does not provide guidance for FY'25 due to the uncertain environment.
- Overall, HCL is committed to maintaining its operational rigor and capital efficiency.