HCL announced its Q4 FY’22 results on April 21, 2022
HCL Technologies Q4 FY’22 Earnings Call audio recording
HCL Technologies Q4 FY’22 press conference video recording
J.P. Morgan 49th Annual Global Technology, Media and Communications Conference
May 24 – 26, 2021
Mr. C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies Ltd., in Fireside chat with JP Morgan Analyst.
Click here to watch the video
Businesses across industries stand at an inflection point today. Far-reaching disruption fuelled by technologies like Digitalization, Analytics, Cloud, IoT and Automation mean these technologies lie at the core of any enterprise that is trying to reinvent itself. As the demand for these services increase, HCL Technologies is accelerating its evolution into a next-generation technology services firm through HCL’s Mode 1-2-3 strategy.
HCL’s Mode 1-2-3 strategy helps future proof our customers’ business, by deploying a concurrent, three-point spotlight on the existing core of their business, new growth areas as well as the ecosystems of the future. As detailed below, each of the three modes have distinct outcomes and growth potential.
Mode 1: Core services
Under Mode 1, HCL delivers core services in the areas of applications, infrastructure, DPO and Engineering & R & D, leveraging DRYiCE autonomics to transform clients’ business and IT landscape making them “lean” and “agile”.
Mode 2: Next generation services
Under Mode 2, HCL delivers experience-centric and outcome-oriented integrated offerings of Digital & Analytics, IoT WoRKS™, Cloud Native Services and Cyber-security & GRC services.
Mode 3: Products & platforms
HCL continues to explore and enter into innovative IP-based partnerships, targeting specific next-generation opportunities. Mode 3 includes the external IP partnership with IBM extending now to half a dozen products; HCL also continues to invest in our internal IP creation strategy and expansion of capabilities and markets for DRYiCE, the next-generation Autonomics and Orchestration platform.
HCL’s Mode 1-2-3 strategy is truly differentiating in the market place today and our clients are increasingly demonstrating their confidence in this strategy and our ability to deliver. We will continue to build and invest in our Mode 1-2-3 capabilities with the primary goal to be the partner of choice for our clients, globally. Lastly, we will continue to re-skill, train and build the capabilities of our employees to be future-ready.Our corporate strategy
See our corporate governance and corporate sustainability initiatives
Corporate and Financial Highlights
- Committed to reduce our environmental impact: We aim to limit our GHG emissions aligned to a 1.5° C pathway by 2030 and to reach net-zero by 2040.
- The company has adopted IFRS accounting standard with transition date as April 1, 2020. The previous period numbers (FY’21 and FY’22) have been recast using IFRS standards.
- Strong Booking performance: For full year FY’22, TCV of New Deal wins at US$ 8,308 mn, registering 14% YoY growth. ACV is higher by 21% YoY on full year basis. TCV of New Deal wins at US$ 2,260 mn for Q4, registering 6% QoQ growth. 10 Net New deal wins in Q4 of which
- Services TCV at US$ 2,216 mn enabled by 6 net new large Services deal wins
- Products TCV at US$ 54 mn enabled by 4 net new large Product deal wins
- Significant number of small deals
- FY’22 Revenue growth at 12.7% YoY in Constant Currency.
- Services Revenue crossed the US$ 10 bn milestone and registered a growth of 14.9% YoY cc for FY’22.
- Q4 FY’22 Revenue growth at 1.1% QoQ cc (13.3% YoY cc).
- During Q4, Services business has grown at 5.0% QoQ cc (17.5% YoY cc), with a CQGR of 5.2% for 3 consecutive quarters
- Engineering and R&D Services grew at robust 3.9% QoQ cc (23.7% YoY cc) driven by traction in digital engineering and IoT Works.
- IT and Business Services grew at healthy 5.2% QoQ cc (16.2% YoY cc), driven by acceleration in cloud transformation and application and data modernization.
- All around growth across verticals and geographies YoY in constant currency for the quarter.
- Growth momentum led by Telecom, Media, Publishing & Entertainment (20.2%), Lifesciences & Healthcare (18.5%), Manufacturing (16.6%), Technology & Services (14.3%), and Financial Services (10.2%).
- Geography growth powered by Europe (13.6%), Americas (13.0%) and ROW (15.0%).
- Mode 2 continues to lead the growth momentum growing at 31.8% YoY in Constant Currency during FY’22.
- Strong client addition across all categories. On YoY basis, US$ 100 mn+ clients up by 1, US$ 50 mn+ clients up by 8, US$ 20 mn+ clients up by 22, US$ 10 mn+ clients up by 30, US$ 5 mn+ clients up by 31, and US$ 1 mn+ clients up by 73.
- Net Income grew at robust 18.3% YoY in Q4. The stellar growth in Net Income is after excluding the impact of one-timers like the Milestone bonus of US$ 78.8 mn and DTL on Goodwill of US$ 165.1 mn, last year.
- Total headcount at 208,877 with Net Addition of 39,900 during the year, up by 23.6% YoY. Net Additions during the quarter was brisk at 11,100, up 5.6% sequentially.
- Cash Generation continues to be robust:
Annual Fiscal Particulars FY'22 As % of Net Income YoY OCF 2,265 125.3% -14.6% FCF 2,044 113% -14.6% Quarter Ended 31-Mar-22 As % of Net income QoQ YoY 735 154.8% 24.3% 54.4% 685 144.2% 29.3% 67.4%
- Gross Cash stands at US$ 2,914 mn and Net Cash at US$ 2,388 mn at the end of March 31, 2022.
- The company has declared a dividend of ₹18 per share for the quarter.