HCLTech has reported that its revenue increased 6.8 percent to $3.445 billion in the second quarter ended September 30, up from $3.225 billion in the same quarter last fiscal year. The company’s net profit rose 10.5 percent year-on-year to $506 million.
However, HCLTech is projecting revenue growth for the fiscal year to 3.5 percent-5 percent, from an earlier projection of 3 percent-5 percent. New deal wins for the quarter amounted to $2.22 billion, a significant decline from $3.96 billion a year ago. The company expanded its tech deal with printer and copier maker Xerox, showcasing its ability to maintain strong client relationships.
HCLTech CEO C Vijayakumar stated that growth during the quarter was evenly distributed across various sectors, geographies, and service offerings. While revenue from the banking, financial services, and insurance (BFSI) and life sciences verticals saw year-on-year declines, other sectors experienced growth. The Americas, HCLTech’s largest revenue-generating region, recorded the highest growth.
The IT industry remains cautious, particularly within the BFSI sector, as companies begin to see signs of recovery amidst concerns over the U.S. economic environment. HCLTech’s rival, Tata Consultancy Services (TCS), also noted similar market weakness in North America.
HCLTech’s revenue growth is not impressive considering the fact that it acquired Germany-based automotive engineering services company ASAP Group in August 2023 for $252 million, aiming to bolster its capabilities in the automotive sector.
HCLTech now employs 218,621 people, adding 780 new employees in Q2 along with 2,932 fresh graduates.
Principal Analyst at Gartner, Ishan Anand, commented on HCLTech’s 6.8 percent year-on-year growth, acknowledging its success in meeting clients’ transformational goals. Despite some client concerns over innovation, Ishan Anand expressed optimism about the company’s future, citing its focus on integrating GenAI capabilities, partnerships with hyperscalers, and innovation in workplace solutions.
