Investors

FY 2021 Guidance

• Revenue expected to grow QoQ between 2% to 3% in constant currency for Q4, FY’21, including DWS contribution.
• EBIT expected to be between 21.0% and 21.5% for FY’21

Key Highlights (for the quarter ending December 2020)

• HCL Revenue cross US$ 10 billion milestone in CY 20, delivering 3.6% YoY growth in constant currency.
  – CY 20 delivered EBITDA at 26.5% and EBIT at 21.5%.
• HCL won 13 transformational deals across industry verticals, including Life Sciences and Healthcare, Technology and Financial Services.
• Broad based growth driven by Mode 2 and Products and Platforms.
  – Mode 2 has been the prime driver of growth, up 25.0% YoY and 10.9% QoQ in constant currency, led by good traction witnessed in cloud native and digital programs.
  – Products and Platforms business has clocked healthy 9.3% YoY growth in constant currency on back of strong new license sales and robust renewals.
• This quarter, margin expansion has been robust on both YoY and QoQ basis.
  – EBITDA at 28.2% expanded 355 bps and 157 bps on YoY and QoQ basis respectively.
  – EBIT at 22.9% expanded by 265 bps and 129 bps on YoY and QoQ basis respectively.
  – It is noteworthy that EBITDA on Ind AS basis, delivered a strong 29.1%.
• Cash Generation and conversion continues to be very strong during CY 20 and for the quarter.
  – During CY 20, we generated Operating Cash Flow of US $ 2667 mn and Free Cash Flow of US $ 2407 mn, up 63.5% and 82.8% respectively on full year YoY basis.
  – Gross Cash stands at US $ 2620 mn and Net Cash at US $ 2,202 mn at the end of December 31st, 2020.
• Snapshot of Consistent & Strong Cash Perfromance in the past 5 Quarters

  Particulars	Quarter Ended					Calendar Year 2020
  	Dec-19	Mar-20	Jun-20	Sep-20	Dec-20
  Operating Cash Flow (US $ mn)	709	521	819	643	684	2,667
  Free Cash Flow (US $ mn)	657	452	757	578	621	2,407
  Operating Cash Flow (OCF) / Net Income (NI)	166%	121%	212%	152%	127%	150%
  Net Cash (US $ mn)	1,101	1,359	1,329	1,826	2,202	2,202

• Cash EPS at ₹ 62.2 and EPS at ₹ 48.7 grew at healthy clip of 27.9% and 26.0% respectively during CY 20.
• Declared Dividend of ₹ 4 /- per share, being 72nd consecutive quarter of dividend pay-out.
• IT Services Attrition (LTM) at 10.2%, down 667 bps on YoY basis. Net Additions at 6,597 during the quarter.

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