Conference Call with HCL Technologies Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights: Revenue at US$ 2,977 mn; up 6.7% QoQ & up 13.8% YoY Revenue up 7.6% QoQ & up 15.0% YoY in Constant Currency Services Revenue (ITBS and ERS) up 5.3% QoQ & up 16.1% YoY in Constant Currency EBITDA margin at 23.4% (Ind AS EBITDA margin at 24.2%); EBIT margin at 19.0% Net Income at US$ 458 mn (Net Income margin at 15.4%) up 3.8% QoQ & down 15.2% YoY Revenue at Rs 22,331 crores; up 8.1% QoQ & up 15.7% YoY Net Income at Rs 3,442 crores; up 5.4% QoQ & down 13.6%* YoY Stellar revenue growth at 7.6% QoQ in Constant Currency, highest in the last 12 years Services business has grown at 5.3% QoQ cc this quarter on back of robust 5.2% QoQ cc in Q2. Engineering and R&D; Services grew at robust 8.3% QoQ cc (19.7% YoY cc) driven by traction in digital engineering and IoT Works. IT and Business Services grew at healthy 4.7% QoQ cc (15.3% YoY cc), driven by acceleration in cloud transformation and application modernization deals Products and Platforms revenue grew at 24.5% QoQ cc (8.2% YoY cc) driven by significant traction in HCL DX and HCL Commerce products. Strong Booking performance: TCV of New Deal wins at US$ 2,135 mn registering 64% YoY growth. Services TCV at US$ 1,968 mn (63% YoY) enabled by 8 net new large Services deal wins; Products TCV at US$ 167 mn (70% YoY) enabled by 8 net new large Product deal wins; Significant number of small deals. All round strong double digit growth across verticals and geographies YoY in constant currency. Growth momentum led by Lifesciences & Healthcare (21.3%), Technology & Services (18.1%), Energy, and Utilities & Public Services (14.8%). Geography growth powered by Americas (15%) and ROW (25.8%). Mode 2 continues to lead the growth momentum growing at 30.2% YoY in Constant Currency. Strong client addition across all categories. On YoY basis, $50 mn+ clients up by 11, $20 mn+ clients up by 13, $10 mn+ clients up by 25, and $5 mn+ clients up by 34, $1 mn+ cients up by 50. Hiring continued at a brisk pace with Net Addition of 10,143 during the quarter. Total headcount now at 197,777. “We are in the disruption phase of our lives, and the world has been dramatically reshaped and transformed. Technology has become all pervasive, in our homes, and livelihoods, and is the epicenter of our lives. Our HCL family has been a catalyst in this change and is helping global enterprises embrace digital transformation, with a unique blend of products and services. As the global economy revives and we emerge from this crisis, we will continue to meet future challenges armed with our core beliefs of innovation and invention, driven by a strong faith in humanitarian values.”, said Roshni Nadar Malhotra, Chairperson, HCL Technologies Ltd. “We have delivered all round stellar performance this quarter with a revenue growth of 7.6% in constant currency QoQ, the highest recorded in the last 46 quarters. Our Products & Platforms segment led the growth with 24.5% followed by Engineering and R&D; Services with 8.3% and IT & Business Services with 4.7%, all in QoQ cc. Our future looks bright as we had a very strong net new booking of $ 2.1B, a 64% YoY increase. We also added more than 10,000 to our employee strength this quarter. I believe we continue to be in a vantage position to address sustained demand momentum as our investments on strategic priorities like digital, cloud & engineering capabilities and our talent development plans are showing strong returns.”, said C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies Ltd. Result PDF