Investors Financial Data

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

Corporate Highlights

• 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)

Financial Highlights

• 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 73^rd 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).