HCLTech Delivers Another Solid Quarter With Revenue Growth of 5.6% YoY (CC)

July 12, 2024 at 13:56 PM EDT

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.