HCL Technologies Limited, commonly known as HCL Tech is an Indian multinational information technology (IT) services and consulting company headquartered in Noida. It emerged as an independent company in 1991 when HCL entered into the software services business.
The company is ranked amongst the top five Indian IT services companies in terms of revenues. HCL Tech has focused on transformational outsourcing, and offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. The company leverages its extensive global offshore infrastructure and network of offices to provide multi-service delivery in key industry verticals.
The company has offices in 52 countries and over 210,966 employees. HCL Tech is on the Forbes Global 2000 list.
Quarterly Earnings Walkthrough
Constant currency revenue has declined by 1.2 percent sequentially and has grown by 10.5 percent Year on Year. US dollar revenue was computed at $323.5 crore which is a growth of 8.1 percent YoY. EBIT of the company was calculated to be at Rs 4836 crore which constituted for 18 percent of the total revenues.
Client additions
HCL Technologies has registered new deal wins having a total contract value (TCV) of $2.07 billion in the last quarter of FY23, which has declined by 8% as compared to the fourth quarter of FY22.
The company’s deal numbers were supported majorly by the services sector and then the software sector. The company disclosed acquisition of 13 large deals. The company has won 10 in services sector and 3 in software sector.
On an annual basis, the company has gained 57 large deals in FY23, out of which 32 were achieved in the services sector and 25 were achieved in Software sector.
Word from the Board
C Vijay Kumar, CEO & MD, HCLTech said in a statement that “Our pipeline is near all-time high, which reflects our differentiated business mix and strong client demand for our offerings. We have added 3,674 employees this quarter and overall employee strength has now grown beyond 225000. All these set us well in FY24 for a healthy revenue growth in 6-8 percent range with operating margins in 18-19 percent range.”
Workforce
HCLTech reported net addition of 17,067 for the Financial Year 2022-23.
The company’s yearly fresher hiring aim of 30,000 was missed. Total fresher addition for FY23 was registered at 26,734. The company aims for an addition of 15,000 freshers during FY24.
HCLTech has vigorously outsourced employees from its new frontier locations which are Sri Lanka, Vietnam, Romania, Mexico, Costa Rica, and Brazil.
The fourth quarter attrition rate was calculated at 19.5 percent on the Last Twelve Months (LTM) basis, which has improved significantly from 21.7% sequentially and from 21.9% YoY.
HCLTech stock price takes support as it approaches the 38.2% retracement level. The stock is relatively cheap as the MFI is at 29 points. Long term investors may accumulate the stock if it falls to the 50% retracement level as the price will come closer to the 200-day exponential moving average.
Disclaimer: We do not endorse or encourage you to take trades or investment decisions based upon our posts/research, all of your trading and investment activities are your own and should be taken through consultation with reputed financial advisors. The analysis posted on this website has been created by involving multiple mediums which are present over the Internet.