HCL Technologies Q4FY22 Results Update

On 21st April 2022, HCL Technologies announced its quarterly results for the last quarter of FY2022 and on Friday 22nd April 2022, the HCL Technologies share price went up by 0.3%.

Key Highlights:

HCL Technologies Q4 Results for FY22 Declare

Q4FY22 Performance updates:

- For Q4FY22 HCL Technologies posted revenue of $ 2,993 Million up by 0.5% QoQ and 11.0% YoY.

- The constant currency revenue is up by 1.1%  QoQ and 13.3% YoY.

- Services Revenue (ITBS and ERS) up 5.0% QoQ & up 17.5% YoY in Constant Currency.

- EBITDA margin at 22.3% and EBIT margin at 17.9%.

- Net Income at $ 475 million with Net Income margin at 15.9% up 3.7% QoQ and 18.3% YoY

- The INR Revenue is at ₹ 22,597 crores with a growth of 1.2% QoQ and  15.1% YoY

- The INR Net Income is at ₹ 3,593 crores with a growth of  4.4% QoQ and 23.9% YoY.
 

FY22 Annual Financial Performance:

- For FY22 HCL Technologies posted revenue of $ 11,481 Million up by 12.8% YoY and constant currency growth at 12.7% YoY.

- Services Revenue (ITBS and ERS) up by 14.9% YoY in Constant Currency.

- EBITDA margin at 24% and EBIT margin at 18.9%.

- Net Income at $1807 million with Net Income margin at 15.7% up by 3.2% YoY

- The INR Revenue is at ₹ 85651 crores with a growth of 13.6% YoY

- The INR Net Income is at ₹ 13499 crores with a growth of  4.3% YoY.

FY23 Forecast:

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

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

Employee count:

- The full-time headcount is 208,877

- Net hiring was 11,000 globally for the quarter ending March 2022 and 39,900 for the year ending March 2022.

- 28% of global employees are women. 

- 165 nationalities represented. 

- Entry-level (fresher) employees hired in FY’22 – 23,000 

- Localization in the U.S. stands at 70.9%, Europe stands at 80.5%, and APAC and the rest of the world (excluding India) stand at 88.9%.

Geographical Revenue:

- For Q4FY22, the revenue from geographical presence in the European market grew by 2.3% on a QoQ basis and by 13.6% on a YoY basis. For FY22, the revenue grew by 10.1%.

- For Q4FY22, the revenue from the geographical presence in the American market increased by 0.2% on a QoQ basis and by 13% on a YoY basis. For FY22, the revenue grew by 13%.

- In Q4FY22, the revenue from the rest of the world grew by 3.5% on a QoQ basis and by 15% on a YoY basis. For FY22, the revenue increased by 18.7%.

Revenue by Industry:

-The constant currency revenue from Financial services grew by 0.4% QoQ and 10.2% YoY for Q4FY22 and for FY2022 it grew by 9.6%.

- The constant currency revenue from Manufacturing grew by 4.3% QoQ and 16.6% YoY for Q4FY22 and for FY2022 it grew by 10.8%.

- The constant currency revenue from Technology and Services declined by 3.8% QoQ and grew by 14.3% YoY for Q4FY22 and for FY2022 it grew by 14.4%.

- The constant currency revenue from Retail and CPG declined by 5.6% QoQ and grew by 6% YoY for Q4FY22 and for FY2022 it grew by 8.9%.

- The constant currency revenue from Telecommunications, Media, Publishing, and Entertainment increased by 6.8% QoQ and 20.2% YoY for Q4FY22, and for FY2022 it grew by 15.7%.

- The constant currency revenue from Lifesciences and Healthcare increased by 4.1% QoQ and grew by 18.5% YoY for Q4FY22 and for FY2022 it grew by 20.6%.

- The constant currency revenue from Public services increased by 3.2% QoQ and 7.8% YoY for Q4FY22 and for FY2022 it grew by 10.4%.
 

Growth in Services:

- The constant currency revenue from IT and Business services grew by 5.2% QoQ and 16.2% YoY for Q4FY22 and for FY2022 it grew by 14.5%.

- The constant currency revenue from Engineering and R&D grew by 3.9% QoQ and 23.7% YoY for Q4FY22 and for FY2022 it grew by 16.8%.

- The constant currency revenue from Products and Platforms declined by 24% QoQ and 13.9% YoY for Q4FY22 and for FY2022 by 1.3%.
 

Partnerships:

- A U.S.-based multinational information technology company selected HCL Technologies for its deep domain Mode 2 Digital Engineering Services expertise as its end-to-end R&D services partner. 

- A Europe-based leading public sector company that owns, operates, and develops railway infrastructure has selected HCL Technologies for provisioning and supporting their entire end-user workplace and print devices across various sites.

- A Europe-based manufacturing company has signed an end-to-end services agreement with HCL Technologies.

- A Canadian integrated energy and utilities company selected HCL Technologies as its strategic partner in a multi-year agreement to standardize and transform the workplace environment for their global workforce. 

- A Europe-based leading global consumer goods company selected HCL Technologies to set up and manage its end-user services and service desk. 

- Novo Nordisk, a multinational pharmaceutical company, has expanded its engagement with HCL Technologies to create a Global and Multilingual Service Desk and Onsite Support solution based on modern KnowledgeCentered Service (KCS) based Knowledge Management, User Experience (UX), and digital technologies like automation. 

- A Europe-based leading global telecom company expanded its partnership with HCL Technologies to manage its cloud operations. 

- HCL Software signed 677 new customers, including large and top global corporations and iconic brands, across retail, CPG (consumer packaged goods), banking, financial, and insurance sectors. 

“We have delivered yet another stellar quarter in our Services business, where the revenue is up 5.0% QoQ & up 17.5% YoY in constant currency. Over the last three quarters, our Services business has been consistently growing organically at 5% and higher, delivering one of the highest CQGR in the industry. Our overall growth on YoY basis stands at 12.7% which is better than the guidance led by strong momentum in Digital, Cloud and Engineering services. We continue to invest proactively to create a larger talent pool to address the demand”, said C Vijayakumar, Chief Executive Officer & Managing Director, HCL Technologies Ltd.