HCL Technologies Q4FY22 Results Update

HCL Technologies Q4FY22 Results Update

Corporate Action
by Shreya Anaokar Last Updated: 2022-08-08T18:47:52+05:30

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. 

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“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.


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About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. 

Disclaimer

Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.

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