Table of Content
Q2 FY 2024 Report Highlights HCLTech
- INR Revenue stood at ₹26,672 Crore, marking a YoY growth of 8.04% and 1.4% QoQ.
- When measured in Constant Currency (CC), the Revenue increased by 1% from the previous quarter, and a steady 3.4% YoY.
- HCLTech Services Revenue increased by 1.6% from the previous quarter and 3.4% YoY CC.
- HCLSoftware Annual Recurring Revenue (ARR) exceeded US$ 1 billion, reflecting a stable 3.6% YoY growth in CC.
- Digital Revenue demonstrated a 3.8% YoY growth in CC, contributing 37.6% to HCLTech Services Revenue.
- The number of clients with revenues exceeding $100 million increased by 3 YoY, while clients with revenues over $50 million saw a substantial increase of 6 YoY.
Additional Read: Q2 Results Dashboard
Profitability and Returns: EBIT and Net Income Show Resilience Amidst Challenges
Reframed Metrics:
- EBIT reached ₹4,934 Crore, accounting for 17.0% of total revenue. This represents a 10.6% jump from the previous quarter but a notable 11.5% year-over-year growth.
- Net Income amounted to ₹3,832 Crore, making up 13.4% of the total revenue showing a 9.8% increase compared to the previous year.
- The Last Twelve Months (LTM) Return on Invested Capital (ROIC) improved to 31.1%, marking a 68 basis point increase from the previous quarter.
- The Operating Cash Flow to Net Income (OCF/NI) ratio stands at 135%, while the Free Cash Flow to Net Income (FCF/NI) ratio is at 126% on an LTM basis.
- The company declared a dividend of ₹12 per share, marking the 83rd consecutive quarter of consistent dividend payments.
Additional Read: HCL Tech Share Price
Bookings and Pipeline Highlights
- Secured 16 significant deals, with 10 in the Services sector and 6 in Software.
- Total Contract Value (TCV) for new deal wins reached an impressive US$ 3,969 million.
- The pipeline, which has now reached an all-time high, witnessed substantial growth, with a 17.7% increase compared to the previous quarter and a remarkable 26.2% growth year-over-year.
FY’24 Guidance Snapshot
- Anticipating Company Revenue growth in the range of 4.0% to 5.0% year-over-year when measured in Constant Currency (CC).
- Services Revenue expected to grow between 4.5% and 5.5% year-over-year in CC.
- EBIT margin projected to be within the range of 18.0% to 19.0%.
Note : EBIT Margin guidance is based on the assumption of a USD-INR exchange rate of US$ 1 = ₹82 and other currencies at the average exchange rates of FY’23.
Segment Wise Highlights for the Quarter Ended 30-Sep-23
HCLTech Consolidated Revenue Mix and Growth
| Details | 30 Sep 22 | 30 Jun 23 | 30 Sep 23 | YoY CC Growth | QoQ CC Growth |
| IT and Business Services (A) | 73.6% | 74.7% | 74.6% | 4.6% | 0.9% |
| Engineering & R&D Services (B) | 17.0% | 15.4% | 16.0% | (2.0%) | 5.0% |
| Services (A+B) | 90.6% | 90.1% | 90.6% | 3.4% | 1.6% |
| HCL Software (C ) | 9.8% | 10.4% | 9.9% | 3.6% | (4.0%) |
| Inter-Segment* (D) | (0.5%) | (0.5%) | (0.5%) | ||
| Total (A+B+C+D) | 100.0% | 100.0% | 100.0% | 3.4% | 1.0% |
*Inter-segment revenue is related to products and services of HCLSoftware used by Services business in rendering services to their customers
EBIT Margin
| Details | 30 Sep 22 | 30 Jun 23 | 30 Sep 23 | YoY BPS Change | QoQ BPS Change |
| IT and Business Services | 16.7% | 16.1% | 18.1% | 140 | 206 |
| Engineering and R&D Services | 21.4% | 16.8% | 19.2% | (221) | 240 |
| Services | 17.6% | 16.2% | 18.3% | 71 | 212 |
| HCLSoftware | 20.3% | 22.9% | 19.4% | (93) | (352) |
| Total | 18.0% | 17.0% | 18.5% | 55 | 154 |
About HCLTech
HCLTech is a prominent worldwide technology firm, housing a workforce of over 221,000 individuals spread across 60 countries. The company’s core focus revolves around digital, engineering, cloud, and AI, supported by a diverse range of tech services and products. We collaborate with clients from various key sectors, offering tailored solutions for Financial Services, Manufacturing, Life Sciences, Healthcare, Technology, Telecom, Media, Retail, and Public Services. Our consolidated revenues for the 12 months ending in September 2023 reached a substantial $12.9 billion.
Source- https://www.hcltech.com/investors#secondquarter
Table Source- https://www.hcltech.com/sites/default/files/documents/investor-reports/IFRS_Financials-Sep-2023.pdf
