HCL Technologies management said that the technology sector is in the midst of a massive digitization wave, with more global enterprises embracing digital transformation to address the disruption of these unprecedented times. Technology has been a key enabler during the pandemic, and as we stand at the cusp of the next phase of technological innovation, it is vital that HCL Tech draws inspiration from each other’s strengths and offers back our own to create a positive impact. Businesses across industries stand at an inflection point today, as they undergo a transformation catalyzed by digital,analytics, cloud, IoT and automation.

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Also, the management said from delivering cutting edge, agile solutions to their partners, to creating people-first initiatives, to building a sustainable and resilient ecosystem, management of HCL Tech are committed to become a catalyst of positive change and the creation of relationships beyond the contract. HCL Technologies won 13 transformational deals across industry verticals, including life sciences and healthcare, technology and financial services.

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HCL Technologies Results Key Highlights (for the quarter ending December 2020):

1. HCL Revenue crosses US$ 10 billion milestone in CY 20, delivering 3.6% YoY growth in constant currency. CY 20 delivered EBITDA at 26.5% and EBIT at 21.5%.
2. HCL won 13 transformational deals across industry verticals, including Life Sciences and Healthcare, Technology and Financial Services.
3. Broad based growth driven by Mode 2 and Products and Platforms. Mode 2 has been the prime driver of growth, up 25.0% YoY and 10.9% QoQ in constant currency, led by good traction witnessed in cloud native and digital programs. Products and Platforms business has clocked healthy 9.3% YoY growth in constant currency on back of strong new license sales and robust renewals.
4. This quarter, margin expansion has been robust on both YoY and QoQ basis. EBITDA at 28.2% expanded 355 bps and 157 bps on YoY and QoQ basis respectively.
5. EBIT at 22.9% expanded by 265 bps and 129 bps on YoY and QoQ basis respectively. It is noteworthy that EBITDA on an Ind AS basis, delivered a strong 29.1%.
6. Cash Generation and conversion continues to be very strong during CY 20 and for the quarter.
During CY 20, HCL Tech generated Operating Cash Flow of US $ 2667 mn and Free Cash Flow of US $ 2407 mn, up 63.5% and 82.8% respectively on a full year YoY basis. Gross Cash stands at US $ 2620 mn and Net Cash at US $ 2202 mn at the end of Dec 31st, 2020.

Key Numbers:

Revenue at US $ 2617 mn; up 4.4% QoQ & up 2.9% YoY
Revenue in Constant Currency; up 3.5% QoQ & up 1.1% YoY
EBITDA margin at 28.2%, (US GAAP); EBITDA margin at 29.1% (Ind AS); EBIT margin at 22.9%
Net Income at US $ 540 mn (Net Income margin at 20.6%) up 27.3% QoQ & up 26.5% YoY
Revenue at Rs 19302 cr; up 3.8% QoQ & up 6.4% YoY Net Income at Rs 3982 cr; up 26.7% QoQ & up 31.1% YoY

FY 2021 Guidance:

Revenue expected to grow QoQ between 2% to 3% in constant currency for Q4, FY’21, including DWS contribution.
EBIT expected to be between 21.0% and 21.5% for FY’21.