HCLTech targets 3-5% growth in revenue in 2024-25 fiscal

HCLTech, India’s No.3 IT service company, has posted a 6 percent year-on-year rise in revenue to $3.43 billion for the three months ended March 31, 2024.
HCL Tech revenue Jan-March 2024HCLTech’s revenue rose 5.4 percent to $13.27 billion during financial year 2023-24.

HCLTech has generated 64.7 percent of its sales from Americas, 28.8 percent from Europe, and 6.5 percent from Rest of the World.

HCLTech has generated 22.1 percent of its sales from Financial Service vertical, 19.9 percent from Manufacturing, 16.9 percent from Lifesciences & Healthcare, 12.9 percent from Technology and Services, 9.2 percent from Telecommunications, Media, Publishing & Entertainment, 9.3 percent from Retail & CPG and 9.6 percent from Public Services.

HCLTech said new deal wins reached $9.759 billion, up 10 percent, during the fiscal 2023-24. HCLTech has won 73 new large deals – 36 in Services and 37 in Software

For the January-March period, HCLTech’s new deal wins reached $2.29 billion from 21 new large deals including 13 in Services & 8 in Software.

HCLTech has revealed the number of employees reached 227,481 with addition of 1,537. HCLTech has added 12,141 freshers during April 2023-March 2024. Employee attrition was 12.4 percent against 19.5 percent in Q4 of last year.

HCLTech during January-March hired 2,725. It also added 3,096 freshers. Employee attrition was 12.4 percent against 19.5 percent in Q4 of last year.

HCLTech’s operating margins came in at 17.6 percent, down 50 bps due to higher wage costs.

HCLTech’s net profit was flat at 39.86 billion rupees compared with the year-ago period.

HCLTech forecast a revenue growth of 3 percent-5 percent for the financial year 2025.

“Led by a differentiated portfolio, HCLTech continues to grow despite global economic and geopolitical headwinds. Our focus on doing business sustainably and responsibly is sharper than ever as we scale our community initiatives beyond India,” Roshni Nadar Malhotra, Chairperson of HCLTech, said.

C Vijayakumar, CEO & Managing Director of HCLTech, said: “Enterprise technology spend will grow with adoption of AI. We are well positioned to capitalize with our AI led propositions, Global delivery model and ideal mix of technology services and products.”

“HCLTech focuses on sectors like manufacturing, banking, finance, healthcare, and government. Despite Q4 results not meeting expectations, the company’s future looks bright with a strong lineup of projects,” Biswajit Maity, Sr Principal Analyst, Gartner, said.

HCLTech is committed to helping enterprise clients reach their transformation goals, as shown by its promise to deliver on contracts. Delays in technology deals are because of less spending and longer decision-making by clients. But there are signs of improvement, especially with the expected rise in demand for IT services in the near future.

“Some clients aren’t satisfied with HCLTech’s innovation, so they need to fix that to keep growing. HCLTech is still investing in advanced solutions like AI/GenAI to improve its services,” Biswajit Maity said.

Some client wins

Central Bank of Ireland has selected HCLTech to set up a hybrid cloud foundation to improve business agility. HCLTech will transform and manage the client’s data center and IT infrastructure services to deliver the hybrid cloud foundation.

Canada Life Assurance Co expanded its digital transformation partnership with HCLTech to modernize IT infrastructure operations and enhance workplace experience. HCLTech will leverage its global delivery model combined with next-generation transformation levers to accelerate the modernization.

“Canada Life is working with HCLTech for select Canada operations because technology and its related skill sets are evolving faster than ever. This change will help us meet our customers where they are and give them confidence we will grow alongside their needs,” Tim Nickerson, Chief Technology Officer of Canada Life.

Popular, Inc., a financial institution headquartered in Puerto Rico, entered into an agreement with HCLTech to operate and modernize the IT infrastructure of its US subsidiary Popular Bank. HCLTech will help accelerate Popular Bank’s digital transformation while providing superior end-user experience.

Baburajan Kizhakedath

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