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HCL Tech posts strong set of numbers, beats estimates

“Our overall growth on a y-o-y basis stands at 12.7%, which is better than the guidance led by strong momentum in digital, cloud and engineering services. We continue to invest proactively to create a larger talent pool to address the demand,” he added.

For FY23, the company expects revenue to grow between 12% and 14% in constant currency and Ebit margin is expected to be between 18% and 20%.

HCL Technology, the country’s third-largest IT services company, reported a strong set of numbers for the January-March quarter on Thursday, beating analyst expectations. For FY23, the company expects revenue to grow between 12% and 14% in constant currency and Ebit margin is expected to be between 18% and 20%.

The company’s consolidated net profit at Rs 3,599 crore was up 4.37% compared with the preceding quarter. Consolidated total income stood at Rs 22,914 crore, against Rs 22,586 crore recorded in the preceding December quarter.

“We have delivered yet another stellar quarter in our services business, where the revenue is up 5% quarter-on-quarter and up 17.5% year-on-year in constant currency. Over the last three quarters, our services business has been consistently growing organically at 5% and higher, delivering one of the highest CQGR in the industry,” HCL Technologies chief executive officer and managing director C Vijayakumar said.

“Our overall growth on a y-o-y basis stands at 12.7%, which is better than the guidance led by strong momentum in digital, cloud and engineering services. We continue to invest proactively to create a larger talent pool to address the demand,” he added.

For FY22, the company’s total contract value (TCV) of the new deal wins stood at $8.3 billion, registering a 14% y-o-y growth. The ACV was higher by 21% y-o-y on a full-year basis.

The firm’s TCV of new deal wins stood at $2.26 billion for the fourth quarter, registering a 6% q-o-q growth.

“Our core beliefs of innovation and collaboration, driven by a strong faith in humanitarian values, have stood us well in these fast-changing times. Clients worldwide see HCL Technologies as their partner of choice to drive business outcomes with our leading-edge technology services, solutions and products. We remain committed to transforming lives and uplifting marginalised communities through the work and perseverance of the HCL Foundation,” Roshni Nadar Malhotra, chairperson at HCL Technologies, said.

As of March 31, HCL Technologies’ full-time headcount stood at 208,877, while net hiring was at 11,000 globally for the quarter ended March 2022 and 39,900 for the year ended March 2022. The IT firm hired 23,000 freshers in FY22.

The company’s client addition was strong across all categories. On a y-o-y basis, HCL Technologies added one client in the $100 million plus category, 8 clients in the $50 million category, 22 clients in the $20 million and 30 in $10 million plus and five in the $5 million category, it said.

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