HCLTech Sustains Growth Momentum in Q1 FY24, Maintains Revenue Guidance

July 12, 2023 at 13:57 PM EDT

Q1 FY24 revenue up by 12.1% YoY at ₹26,296 crore; revenue in constant currency up by 6.3% YoY; EBIT at ₹4,460 crore, up 11.7% YoY
18 large deals won with total cumulated value of $1.565 billion; deal pipeline at all-time high, growing 17.7% QoQ and 26.2% YoY
Company retains FY24 revenue guidance at 6-8% in CC and EBIT margin at 18-19%; announces dividend of ₹10 per share

HCLTech, a leading global technology company, today announced its financial results for the quarter ended June 30, 2023.

During Q1 FY24, HCLTech sustained its growth momentum despite the challenging global macro environment. INR revenue was at ₹26,296 crore, up 12.1% YoY and down 1.2% QoQ. EBIT for the quarter was at ₹4,460 crore, up 11.7% YoY and down 7.8% QoQ. Revenue in constant currency grew by 6.3% YoY and was down 1.3% QoQ. Services revenue grew by 7.1% in CC. HCLSoftware annual recurring revenue (ARR) came in at more than $1 billion, up 4.7% YoY (CC).

HCLTech retained FY24 revenue guidance at 6-8% in CC and EBIT margin at 18-19%. Attrition rate for the quarter remained at 16.3%, down 7.5% YoY. The company announced a dividend of ₹10 per equity share.

HCLTech won 18 large deals—7 in services and 11 in software — during the quarter, translating into total cumulated value (TCV) of new deal wins of $1.565 billion. The deal pipeline is at an all-time high and grew 17.7% QoQ and 26.2% YoY.

“In Q1 FY24, our revenue and people strength sequentially moderated in line with the demand environment. We delivered a 6.3% YoY growth in constant currency. We experienced strong growth in our largest verticals—Financial Services, Manufacturing, and Life Sciences and Healthcare—fueled by large deals. These large deals helped offset cuts in client discretionary spend in these verticals. We are expecting other verticals to pick up as well shortly. This, combined with the strength of our record-high pipeline, enables us to maintain our guidance for the year,” said C Vijayakumar, CEO and Managing Director, HCLTech.

In terms of geographical mix, while Europe and the Middle East (EMEA) grew by 10.5% YoY (CC), Americas revenue grew by 7.3% YoY (CC). Industry vertical growth was led by Manufacturing at 16.5% YoY (CC) and Financial Services at 14.4% YoY (CC).

"HCLTech delivered 12.1% YoY revenue growth in INR this quarter, with Services growing at 12.9% YoY in INR. We have demonstrated healthy client addition with $100 million clients up by three and $50 million clients up by six on a YoY basis. Our EBIT margin remains stable on YoY basis," said Prateek Aggarwal, Chief Financial Officer, HCLTech.

HCLTech outlined its focus on emerging technologies in the AI and generative AI space to serve the evolving digital transformation requirements of clients. From chip design and data center optimization to AI applications and models, the company has more than 70 projects in the pipeline—from proof of concept (POC) to implementations.

Key CSR and sustainability recognitions during Q1 FY24:

HCLTech won the National Water Award 2022 for its water conservation and management initiatives in India through community action and innovative technologies. The awards have been instituted by the Ministry of Jal Shakti, Government of India.
HCLTech was ranked among the Top 10 Most Sustainable Companies in India in a study by BW Businessworld and Sustain Labs, Paris.

About HCLTech

HCLTech is a global technology company, home to more than 223,438 people across 60 countries, delivering industry-leading capabilities centered around digital, engineering, cloud and AI, powered by a broad portfolio of technology services and products. We work with clients across all major verticals, providing industry solutions for Financial Services, Manufacturing, Life Sciences and Healthcare, Technology and Services, Telecom and Media, Retail and CPG, and Public Services. Consolidated revenues as of 12 months ending June 2023 totaled $12.8 billion. To learn how we can supercharge progress for you, visit hcltech.com.