Investors

Corporate and Financial Highlights

• 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+ clients up by 50.
• Hiring continued at a brisk pace with Net Addition of 10,143 during the quarter. Total headcount now at 197,777.

• Cash Generation continues to be robust:

  Particulars	Quarter Ended (30-Sep-2021)	Last Twelve Months Ended (30-Sep-2021)
  Operating Cash Flow (US$ mn)	584	1,952
  Free Cash Flow (US$ mn)	521	1,699

• Gross Cash stands at US$ 2,666 mn and Net Cash at US$ 2,140 mn at the end of December 31, 2021.
• New acquisitions
  • HCL is acquiring 100% stake in Starschema, a limited liability company incorporated in Hungary for total cash consideration of US$ 42.5 mn. With this acquisition, HCL would enhance its capabilities and solutions in Data Engineering which will accelerate the growth of Mode 2 services in Digital Engineering, Near-shore Eastern European presence and ability to scale. The transaction is expected to be closed by March 2022.
  • HCL announced the acquisition of 51% equity stake in the German IT consulting company Gesellschaft für Banksysteme GmbH (gbs), along with apoBank, who would hold the balance 49% of equity. The strategic partnership would drive digital transformation and innovation for German financial services sector. HCL has paid Euro 99,000 as the purchase consideration for its 51% stake. The transaction has been completed with effect from January 5, 2022.
• The company has declared a dividend of INR 10 per share for Q3, being 76th consecutive quarter of dividend pay-out.

FY 2022 Guidance

• Revenue expected to grow in double digits in constant currency for FY’22.
• EBIT margin expected to be between 19% and 21% for FY’22.