- Revenues at US$ 6,975 mn; Up 11.9% YoY
- Revenue Growth in Constant Currency at 13.7% YoY
- Net Income at US$ 1,262 mn; Up 12.9% YoY
Highlights for Annual Results FY2017
- Revenue at US $ 6,975 mn; up 11.9% YoY
- Net Income at US $ 1,262 mn; up 12.9% YoY
- Revenue from Mode 2 and Mode 3 offerings together grew 30.9% in 12 months period ending Mar’17. The share of Mode 2 and Mode 3 revenues together stands at 18.6% for FY’17 compared to 15.9% for 12 months period ended Mar’16.
- Strong client addition: $5+ Mn clients up by 13, $10+ Mn clients up by 9, $20+ Mn clients up by 10, $40+ Mn clients up by 5, and $50+ Mn clients up by 6
- Operating Cash Flow/Net Income conversion at 112%
- Announces dividend of INR 6 per share, 57th consecutive quarter of dividend payout
- Return on Equity at 27%
Key Business Highlights
- During the quarter, HCL signed 8 transformational deals, representing, representing a well-balanced mix across service lines, industry verticals and geographies. This takes the total number of transformational wins to 42 for FY’17. HCL continues its momentum on winning transformational deals with blue-chip customers, powered by its differentiated Mode 1-2-3 strategy.
- Revenue grew by 13.7%
- Growth witnessed across key Service Offerings led by Infrastructure Services at 27.4%, Engineering and R&D Services at 11.7% and Application Services at 5.9%
- Vertical growth led by Public Services at 31.3%, Retail & CPG at 21.4%, Manufacturing at 17.0%, Lifesciences & Healthcare at 11.1%, Telecommunications, Media, Publishing & Entertainment at 5.8% and Financial Services at 4.9%.
- Americas, Europe grew by 14.8% and 15.0% respectively
With the advent of the fourth industrial revolution, we are seeing a convergence of physical and digital worlds. This convergence is creating an interplay of business models and redefining the way value is created and delivered. HCL remains at the forefront of the changing market paradigm with its responsible leadership, value–driven business model, and focus on sustainability, diversity and inclusion”, said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies Ltd.
“We are very pleased with our industry–leading financial results for both the fourth quarter and the full year FY’17. In Q4, we had a healthy sequential growth of 3.8% (constant currency) in revenues at an EBIT margin of 20%. For the year FY’17, we delivered a strong double–digit constant currency revenue growth of 13.7% at an EBIT of 20.3%, which is at the higher end of the guided range.
Additionally, our Mode 2 and 3 Services, which focus on new growth areas like Digital, Cloud, Security and IoT as well as Products and Platforms registered a very impressive 30.9% growth in FY’17. Our differentiated employee engagement practices, underlined by a focus on next–gen learning and development, helped us reduce attrition rates to 16.9%. Going forward, we will continue to accelerate investment in high–growth areas, driven by our Mode 1-2-3 strategy and sustain our trajectory of delivering exceptional value to our employees, customers and shareholders”, said C.Vijayakumar, President & CEO, HCL Technologies Ltd.
"We are glad about the overall Fiscal 2017 and the quarter performance. Our Cash Flow generation during the year continues to be robust with Net Income to Operating Cash Flow conversion at 112%. Our focus on rewarding shareholders continues with the announcement of INR 3,500 Crore Buy-back program. Return on Equity continues to be healthy at 27% for the year”, said Anil Chanana, CFO, HCL Technologies Ltd.