HCLTech Delivers Another Solid Quarter With Revenue Growth of 5.6% YoY (CC)
July 12 2024 - 1:56PM
Business Wire
- Wins new deals with Total Contract Value of almost $2B in Q1
FY25
- Dividend of ₹12 per share for the quarter
HCLTech, a leading global technology company, today announced
its financial results for the quarter ended June 30, 2024.
HCLTech won new deals worth $1.96 billion across industries and
geographies during the quarter. Revenue in constant currency (CC)
grew 5.6% YoY, while dollar revenue came in at $3.36 billion, up
5.1% YoY.
Services revenue was up 5.8% YoY (CC) while Digital revenue was
up 6% YoY (CC). Engineering and R&D Services business (ERS)
grew by 8.4% YoY (CC). HCLSoftware continued its strong growth
momentum with revenue for the quarter growing at 3.5% YoY (CC).
Net Income for the quarter was ₹4,257 crores, up 20.4% YoY. The
company retained revenue growth guidance of 3-5% (CC) and EBIT
margin guidance of 18-19% for FY25.
“We are pleased to report another quarter of industry-leading
performance with 5.6% YoY revenue growth on constant currency
basis. Our Q1 revenue and EBIT performance was slightly better than
our expectations. We clocked in $2B TCV of new business bookings.
We are confident of decent growth in the coming quarters,
positioning us well to deliver our revenue guidance for the year as
clients continue to spend on GenAI and other emerging
technologies,” said C Vijayakumar, CEO & Managing Director,
HCLTech.
Americas was the fastest-growing geography with revenue growth
of 8% YoY (CC), followed by Europe at 3% YoY (CC). Industry
vertical growth was led by Telecommunications, Media, Publishing
and Entertainment (69.2% YoY in CC), followed by Retail and CPG
(9.7% YoY in CC).
“HCLTech delivered an INR revenue growth of 6.7% YoY, healthy
given the global environment. EBIT margins came in at 17.1%, steady
on YoY basis. We delivered PAT of ₹4,257 crores for the quarter,
which translates to YoY growth of 20.4%. Our cashflow generation
remains robust with LTM FCF at ₹21,637 crores, 133% of PAT and 88%
of EBITDA,” said Prateek Aggarwal, Chief Financial Officer,
HCLTech.
Attrition (last twelve months) at 12.8% was among the lowest in
the industry. The company hired 1,078 freshers during Q1 FY25.
HCLTech continues to leverage technologies from GenAI to cloud
computing to help clients future-proof their businesses.
Among the select GenAI deals that HCLTech won in the quarter
are:
- A Europe-based financial services major has partnered with
HCLTech to develop and manage its next-gen low latency electronic
trading platform and compliance analytics platform by leveraging
GenAI.
- A global technology major has selected HCLTech to deploy GenAI
to transform its content life cycle management and processes.
HCLTech will help the client to automate its content processing
with intelligent features such as persona filters.
- A US-based hi-tech major has engaged HCLTech to create and
maintain a GenAI-as-a-service (GaaS) platform.
Other Achievements:
- HCLTech was the most decorated India-headquartered IT services
company in the Institutional Investor Research Annual Asia
Executive Team survey with #1 ranks in 21 categories in the
Technology IT Services & Software sector.
- Won SAP Pinnacle Award in the Social Impact category for the
HCLTech AquaSphere solution that helps enterprises achieve their
water conservation goals.
- Secured the #3 spot in Brand Finance's Sustainability
Perception Index in India.
- Ranked # 7 in BW Businessworld India’s Most Respected Companies
2024 list.
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version on businesswire.com: https://www.businesswire.com/news/home/20240712367342/en/
HCLTech Meenakshi Benjwal, Americas
meenakshi.benjwal@hcltech.com
Elka Ghudial, EMEA elka.ghudial@hcltech.com
James Galvin, ANZ james.galvin@hcltech.com
Siddhartha Bhatnagar, India bhatnagars@hcltech.com