Thought leadership: C Vijayakumar - CEO and MD of HCL Technologies details the Q4 performance
He stated that HCL Technologies have pledged to limit its greenhouse gas emissions to a 1.5-degree pathway by 2030 and to reach net zero by 2040.
Concerning the Q4 performance C Vijayakumar said that they have delivered yet another stellar quarter in their services business, where the revenue is up 5% quarter-on-quarter and up 17.5% year-on-year in constant currency. Over the last 3 quarters, they have managed to deliver one of the highest CQGRs in the industry. HCL delivered strong revenue growth of 12.7% in constant currency for the full year FY'22 and their services business grew 14.9% year-on-year headlined by their digital application services, engineering services and cloud transformation services.
Vijayakumar was pleased to announce that they crossed a significant milestone of 200,000 employees. In Q4, they posted a 1.1% sequential and 13.3% year-on-year growth in constant currency led by very strong momentum in the services business. Their net income grew 3.7% quarter-on-quarter and 18.3% year-on-year in dollar terms during this quarter. The company saw a dip in their operating margin performance quarter for this quarter as it was 17.9% and for the full year it was 18.9%.
HCL technologies are seeing increasing acceptance of offshoring, especially in Europe due to the secular talent shortage trend and emerging geopolitical risks. C Vijayakumar added that this fiscal they made record hiring and had 39,900 new additions to their family. He informed that their attrition also remains lower than the industry at 21.9%.
Regarding the outlook for FY '23, the company is confident in the market environment and the relevance of the solutions and services they offer to the clients based on their requirements. With that confidence, they are guiding for 12% to 14% revenue growth in constant currency and in terms of operating margins, they are guiding 18% to 20%. He stated this because they are seeing the continued need to invest in the talent model transformation to prepare for the next big wave of digital spending in the market.
C Vijayakumar concluded by saying that they are entering FY’23 full of optimism and hope to continue to generate value for all the stakeholders across the board.
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