HCL announced its Q2 FY’22 results on October 14, 2021
HCL Technologies Q2 FY’22 Earnings Call audio recording
HCL Technologies Q2 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
New Q2 FY22 Earnings Call - Playback number (available till 21st October 2021): +91-22-7194-5757/6663-5757 (Playback id: 425)
(Issuance of USD denominated unsecured notes)
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
- Strong Booking Performance: Q2 TCV of New Deal wins at US $ 2,245 mn registering 38% YoY growth enabled by 14 net new Large deal wins.
- Q2 revenue growth powered by services revenue at 5.2% QoQ and 13.1% YoY in constant currency.
- Engineering and R&D Services grew at robust 5.4% QoQ cc (12.7% YoY cc) driven by traction in digital engineering.
- IT and Business Services grew at strong 5.2% QoQ cc (13.2% YoY cc), driven by acceleration in application modernization and cloud transformation deals.
- Mode 2 continues to lead the growth momentum growing at 12.5% QoQ cc (36.3% YoY cc).
- HCL Technologies positioned as a Leader in The Forrester WaveTM for Application Modernization and Migration Services, Q3 2021
- HCL Technologies positioned as a Leader in 2021 Gartner® Magic QuadrantTM for Public Cloud IT Transformation Services. HCL ranked high in Gartner’s Critical Capabilities for Public Cloud IT Transformation Services report.
- All round growth across verticals and geographies YoY in constant currency basis.
Growth momentum led by Lifesciences & Healthcare (20.1% YoY cc), Telecommunications, Media, Entertainment and Publishing (13.4% YoY cc), Manufacturing (11.9% YoY cc), Technology & Services (10.8% YoY cc).
- Strong client addition across all categories. On YoY basis, $100 mn+ clients up by 1, $50 mn+ clients up by 12, $20 mn+ clients up by 18, $10 mn+ clients up by 18, and $5 mn+ clients up by 12.
- Hiring continued at a brisk pace with Net Addition of 11,135 during the quarter being the highest in the last 24 quarters. Total headcount now at 187,634.
- Cash Generation continues to be robust:
Particulars Quarter Ended
Last Twelve Months Ended
Operating Cash Flow (US$ mn) 465 2,052 Free Cash Flow (US$ mn) 390 1,798
- Gross Cash stands at US$ 2,696 mn and Net Cash at US$ 2,171 mn at the end of September 30, 2021.
- HCL announced a Payout policy that entails investor payouts of not less than 75% of Net Income cumulatively over 5 years FY’22 to FY’26. In line with this policy, the company has declared a dividend of INR 10/- per share for Q2, being 75th consecutive quarter of dividend pay-out.
- LTM EPS at INR 49.5 registered healthy growth at 9.5% YoY.