HCL Technologies Announces Q2 Results, Roshni Nadar Malhotra Appointed as VC

HCL Technologies has reported a net income at Rs 2,540 crore against Rs 2,403 crore in the quarter ended June 2018, which is up 5.7% QoQ and 16.1% YoY. The Company’s revenue stands at 2,099 million dollars (up 2.1% QoQ and 8.9% YoY) and revenue in constant currency is up 3.0% QoQ and 10.5% YoY.

Some other key highlights that were shared are as follows:  

Roshni Nadar Malhotra has been appointed as the Vice Chairman of the Board of Directors of the Company with effect from October 22, 2018. She continues to be the Non-Executive Director of the Company.

Strong deal win momentum continues. Signed 17 transformational deals reflecting a mix of Mode 1 and Mode 2 services led by Digital and Analytics, Cloud Native, IoT Works, Cybersecurity, along with Infrastructure Services, Engineering and R&D Services and Business Services.

Mode 3 revenues achieved the milestone of 1 billion dollars on annual run rate basis. Global Infrastructure Services delivered a 3.3% sequential growth in constant currency. Engineering and R&D Services saw strong demand and healthy growth in Q2 led by the Technology and Services, Telecom and Life Sciences and Healthcare.

The Americas region continues to post strong growth at 13.0% LTM YoY on a Constant Currency basis, leading the way in company growth. HCL commemorated the 30th year of operations in the US, where 64% of employees are locals.

Growth momentum was driven by Technology and Services at 38.0%, Lifesciences and Healthcare at 13.9% and Retail & CPG at 11.1% (on LTM YoY Constant Currency basis).

Client Partner Program continues to drive strong growth with new additions on YoY basis: $50+ Mn clients up by 6, $20+ Mn clients up by 6, $10+ Mn clients up by 8, $5+ Mn clients up by 10 and $1+ Mn clients up by 39.

Buy Back programme, aggregating Rs 4,000 crores for FY’19 at a price of Rs 1,100/- per equity share has been successfully concluded on 11th October 2018. Dividend of Rs 2 per share, 63rd consecutive quarter of dividend payout has been announced.

FY’19 Guidance

FY'19 Revenues are expected to grow between 9.5% and 11.5% in Constant Currency  Revenue Guidance is based on FY’18 (April to March) average exchange rates. The above constant currency guidance translates to 8.2% to 10.2% in USD terms based on Sept 30, 2018 rates. Operating Margin (EBIT): FY’19 expected Operating Margin (EBIT) range is from 19.5% to 20.5%.

“Technology continues to be at the center stage of enterprise digital transformation and all forward-looking companies are using it to differentiate in the marketplace. HCL with its deep capabilities and innovation mindset along with our commitment towards CSR, diversity and inclusion remains at the forefront of this changing industry dynamic” said Shiv Nadar, Chairman and Chief Strategy Officer, HCL Technologies.

“We continue to deliver strong and consistent QoQ revenue and margin growth performance. This quarter we posted 3% revenue growth in constant currency fueled by Global Infrastructure Services, Engineering and R&D and Mode 2 next-gen services. Additionally, our Mode 3 revenue continues to accelerate and achieved the billion-dollar annual run-rate milestone. We remain confident of retaining this growth trajectory going forward”, said C Vijayakumar, President and CEO, HCL Technologies.