HCL Technologies Q1 Results FY2023, Revenue up by 3.8% QoQ

On 13th July  2022, HCL Technologies announced its quarterly results for the first quarter of FY2023. 

Key Highlights:

Q1FY23 Performance updates:

- For Q1FY23 HCL Technologies posted revenue of $ 3025 Million up by 1.1% QoQ and 11.2% YoY.

- The constant currency revenue is up by 2.7%  QoQ and 15.6% YoY.

- Services Revenue (ITBS and ERS) up 2.3% QoQ & up 19% YoY in Constant Currency.

- EBITDA margin at 21.2% and EBIT margin at 17.0%.

- Net Income at $ 424 million with Net Income margin at 14% down by 10.7% QoQ and down by 2.5% YoY

- The INR Revenue is at ₹ 23464 crores with a growth of 3.8% QoQ and 16.9% YoY

- The INR Net Income is at ₹ 3283 crores with a drop of 8.6% QoQ and up by 2.4% YoY.

HCL Technologies Q1FY23 Result Review

FY23 Forecast:

- Revenue is expected to grow between 12% to 14% in constant currency. 

- EBIT margin is expected to be between 18% to 20%.
 

Geographical Revenue:

- For Q1FY23, the revenue from geographical presence in the European market grew by 1.6% on a QoQ basis and by 22.5% on a YoY basis. 

- For Q1FY23, the revenue from the geographical presence in the American market increased by 2.8% on a QoQ basis and by 17.5% on a YoY basis. 

- In Q1FY23, the revenue from the rest of the world grew by 1.1% on a QoQ basis and by 18.2% on a YoY basis. 

Revenue by Industry:

- The constant currency revenue from Financial services grew by 0.8% QoQ and 16.4% YoY for Q1FY23.

- The constant currency revenue from Manufacturing declined by 0.5% QoQ and grew by 19.1% YoY for Q1FY23.

- The constant currency revenue from Technology and Services grew by 10.9% QoQ and by 34.2% YoY for Q1FY23.

- The constant currency revenue from Retail and CPG declined by 1.4% QoQ and grew by 5.8% YoY for Q1FY23.

- The constant currency revenue from Telecommunications, Media, Publishing and Entertainment increased by 4.3% QoQ and 29.2% YoY for Q1FY23.

- The constant currency revenue from Lifesciences and Healthcare increased by 2.7% QoQ and grew by 15.7% YoY for Q1FY23.

- The constant currency revenue from Public services declined by 0.2% QoQ and grew by 15.2% YoY for Q1FY23.

Other Highlights:

- The total headcount of the company was reported at 210966, seeing a growth of 19.5% YoY and for its global employees, 28.3% are women

- HCL Technologies won 16 new deals across diverse verticals with a global contract value of $2054 million, registering a growth of 23.4% YoY

Commenting on the results  Roshni Nadar Malhotra, Chairperson, HCL Technologies Ltd said, “ As technology becomes central to lives and businesses, HCL is accelerating the digital transformation journeys of its clients. We continue to pursue our growth strategy with a sense of purpose and responsibility toward our stakeholders and communities.”

“We have started FY’23 on a strong note with an overall growth of 2.7% QoQ and 15.6% YoY in Constant Currency. Our services business continues to have robust growth momentum, growing at 2.3% QoQ and 19.0% YoY in constant currency, driven by our digital engineering and digital application services with cloud adoption being a horizontal theme across all services and verticals”, said C Vijayakumar, CEO & Managing Director, HCL Technologies Ltd. “Our new bookings grew 23.4% YoY supported by a good mix of large and mid-sized deals and our pipeline remains near-record high. Our operating margin came in at 17.0%. We have put in place the right measures that will improve our profitability going forward.”, he added.