- Industry Left Col
- Industry Right Col
HCL announced its Q4 and Annual FY’21 results on April 23, 2021
HCL Technologies Q4 FY’21 Earnings Call audio recording
HCL Technologies Q4 FY’21 press conference video recording
J.P. Morgan 49th Annual Global Technology, Media and Communications Conference
May 24 – 26, 2021
Mr. C Vijayakumar, President & CEO, HCL Technologies Ltd., in Fireside chat with JP Morgan Analyst.
Click here to watch the video
New Q4 and Annual FY21 Earnings call playback number (available till 30th April 2021): +91-22-7194-5757/6663-5757 (playback id: 425)
14-June-2021: Release – “HCL continues to accelerate its #HCLCloudSmart journey; appoints Siki Giunta to lead its Cloud Consulting and Offerings Strategy”
06-June-2021: Release – “HCL Software Launches its Cloud-Native, Web and Mobile- Ready Version of Domino Application Development Platform”
03-June-2021: Release – “HCL Tops the Edelweiss ESG Scorecard & Ratings for India’s top 100 Companies”
25-May-2021: Release – “HCL Technologies to Bring McLaren Health Care’s Digital Transformation Vision to Life and Deliver Cost-Efficient Solutions”
17-May-2021: Disclosure under Reg. 23(9) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
21-April-2021: Conference call on the Financial Results for the quarter and financial year ended March 31, 2021 (REVISED)
15-April-2021: Conference call on the Financial Results for the quarter and financial year ended March 31, 2021
12-April-2021: Board Meeting Intimation- April, 2021
12-April-2021: Trading Window Closure Intimation
23-Mar-2021: Timelines for trading window closure
10-Mar-2021: Subject: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 --- Re. Issuance of USD denominated unsecured notes
04-Mar-2021: Subject: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Re. Issuance of USD denominated unsecured notes
03-Mar-2021: Release – “HCL Technologies recognized as a leader in IDC MarketScape: Canadian Cloud Professional Services 2021 Vendor Assessment”
02-Mar-2021: Release – “HCL Software’s cloud-native Digital Experience and Unica marketing platforms now on Google Cloud”
01-Mar-2021: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(Issuance of USD denominated unsecured notes)
(Issuance of USD denominated unsecured notes)
25-Feb-2021: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015-- Issuance of USD denominated unsecured notes
16-Feb-2021: Release- "HCL Foundation continues commitment to enhance rural lives; announces INR 16.5 crore ($2.27 million) grant to NGOs in sixth edition of HCL Grant"
08-Feb-2021: Release – “HCL Technologies marks $10B Revenue milestone, thanks Employees Worldwide with Special Bonus”
03-Feb-2021: Release – “HCL Technologies and Alteryx announce global strategic alliance to accelerate analytics automation and digital transformation for Global 2000 enterprises ”
27-Jan-2021 : Release – “HCL Technologies and University of California, Berkeley to Partner on advanced Health Technology Collaborative Laboratory”
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
FY 2022 Guidance
- Revenue expected to grow in double digits in constant currency for FY’22.
- EBIT margin expected to be between 19.0% and 21.0% for FY’22
- HCL won 19 new large deals in Q4, FY’21 across industry verticals, including Financial Services, Life Sciences and Healthcare, consumer goods and manufacturing. In FY21, HCL signed a total of 58 new large deals led by industries such as Financial Services, Life Sciences and Healthcare, Telecommunication, Manufacturing and Technology.
- New Deal TCV hit an all-time high this quarter at US$ 3.1 B, increasing 49% YoY. For FY’21, New Deal TCV are US$ 7.3 B, which is 18% increase over FY’20.
- In FY’21, US$ 50 mn+ clients increased by 5 on YoY basis, while in FY’20, US$ 100 mn+ clients increased by 5, on YoY basis. The traction in US$ 100 mn+ and US$ 50 mn+ clients in the last two years is clearly reflective of remarkable success in account mining.
- HCL received 2021 ESG (Environmental, Social, and Corporate Governance) Industry Top Rated Badge by Sustainalytics, a leading independent ESG and corporate governance research, ratings and analytics firm. HCL was ranked 15th out of 167 in the sub-industry IT consulting, 9th percentile, with an ESG Risk Rating score of 16.5 and ESG Rating score of 70.
- Continuing its expansion in Canada, HCL announced the opening of an innovation center in Mississauga, Ontario. From this newest 350 seater global delivery center (GDC), HCL will deliver advanced technology solutions to its global client base, helping them accelerate their digital transformation journeys.
- HCL announced the closure of its acquisition of the DWS Group (with effect from January 5, 2021), a leading Australian IT, business and management consulting group, which delivers business and technology innovation to multiple clients across a spectrum of industry verticals across Australia and New Zealand.
- IT Services attrition (on LTM basis) at 9.9% in Q4 FY’21 (down from 16.3% last year), reflective of success of HR employees engagement initiatives.
- Total headcount at 168,977 with Net Addition of 18,554 during the year, up by 12.3% compared to FY’20. (Net Additions during the quarter 9295, up by 5.8% over Q3)
- In FY’21, HCL’s revenue stood at US$ 10,175 mn delivering annual growth at 1.1 % in constant currency on YoY basis. On a QoQ basis, HCL delivered revenue growth at 2.5% in constant currency, within the guided range of 2%-3%.
– IT and Business Services grew by 4.4% QoQ in Constant Currency. Due to seasonality, YoY growth in Products & Platforms business is the right measure to assess growth and this grew 3.3% in Constant Currency.
– The Revenue growth was on back of Mode 2 that grew 25.2% on YoY basis in constant currency this quarter.
– In FY’21, HCL delivered EBIT at 21.4% (ex-special onetime bonus impact) v/s the guided range of 21% to 21.5%. The one-time special bonus including the payroll tax was US$ 99.8 mn.
- Strong Cash Generation and cash conversion during FY’21.
– Operating Cash Flow was at US$ 2,602 mn and Free Cash Flow at US $ 2,340 mn, up 49% and 58% respectively on full year basis.
– Gross Cash stands at US$ 2,803 mn and Net Cash at US $ 2,268 mn at the end of March 31st, 2021.
– Robust Cash conversion with OCF/NI at 155% and FCF/NI at 139%.
- Cash EPS at INR 59.3 and EPS at INR 47.9 grew at healthy clip of 12.4% and 17.6% respectively during FY’21.
- Declared Dividend of INR 6 /- per share, being 73rd consecutive quarter of dividend pay-out. In addition the board has declared a Special Interim Dividend of INR 10 /- per share as a milestone to mark the Company crossing the $10 B milestone. Total interim dividend is INR 16 /- per share, bringing up the total for the year to INR 26 /- per share.
Note: Exclude the impact of onetime milestone bonus paid in Q4 FY’21: $99.8 mn ($78.8 mn net of tax); INR 728 crores (INR 575 crores net of tax).