Key Financial Data

Revenue at US$ 10,022 mn; up 3.6% YoY in US$ and Constant Currency
EBITDA margin at 26.5%, (US GAAP); EBITDA margin at 27.4% (Ind AS); EBIT margin at 21.5%
Net Income at US$ 1781 mn (Net Income margin at 17.8%) up 19.8% YoY

Revenue at US$ 2,617 mn; up 4.4% QoQ & up 2.9% YoY
Revenue in Constant Currency; up 3.5% QoQ & up 1.1% YoY
EBITDA margin at 28.2%, (US GAAP); EBITDA margin at 29.1% (Ind AS); EBIT margin at 22.9%
Net Income at US$ 540 mn (Net Income margin at 20.6%) up 27.3% QoQ & up 26.5% YoY

All numbers are as per US GAAP, in mn US$, unless otherwised stated

	FY'16	FY'17	FY'18	FY'19	FY'20
Revenues	4,698	6,975	7,838	8,632	9,936
Gross Profit	1,608	2,364	2,709	3,154	3,748
Earnings before interest, tax, depreciation and amortization EBITDA	1,009	1,539	1,777	1,995	2,345
Operating Income, EBIT	942	1,414	1,552	1,688	1,946
Net Income	840	1,262	1,360	1,441	1,554
Diluted EPS (in INR)	26.3	29.9	31.3	36.8	40.8
Other Key Metrics
Gross Margin	34.2%	33.9%	34.6%	36.5%	37.7%
EBITDA Margin	21.5%	22.1%	22.7%	23.1%	23.6%
EBIT Margin	20.1%	20.3%	19.8%	19.6%	19.6%
Effective Tax Rate	21.0%	18.8%	20.9%	19.7%	20.9%
Net Income Margin	17.9%	18.1%	17.4%	16.7%	15.6%
Return on Equity	28.2%	27.7%	25.5%	24.9%	23.6%

Please note:

EPS for FY’15 to FY’19 have been adjusted for Bonus Issue announced on October 23, 2019.
FY'16 financials (as above) are basis 9 months ended 31-Mar-2016, however diluted EPS and ROE for FY'16 have been annualized.
ROE formula: Profit After Tax / Last five Quarter Average of Total Equity.

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

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
Particulars	Dec-19	Mar-20	Jun-20	Sep-20	Dec-20	Calendar Year 2020
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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