HCLTech, a global leader in technology services and solutions, has released its financial results for the first quarter of FY 2025, showcasing notable year-on-year growth despite facing economic headwinds. The company reported a revenue of Rs 28,057 crores, reflecting a 6.7% increase year-on-year (YoY), although it experienced a 1.6% decline quarter-on-quarter (QoQ). In constant currency terms, revenue rose by 5.6% YoY but fell by 1.6% QoQ.
Also read: TCS Q1 Results Indicate Strong Financial Performance
Roshni Nadar Malhotra, chairperson of HCLTech, highlighted the company’s readiness to leverage emerging opportunities driven by Generative AI (GenAI) while maintaining a commitment to sustainable and responsible business practices. “With our future-ready portfolio, we are well placed to tap emerging opportunities led by GenAI. We remain committed to doing business sustainably and responsibly as we continue to supercharge progress for our clients,” she said.
Revenue Highlights of HCLTech Q1 Results Announced
Prateek Aggarwal, chief financial officer, HCLTech emphasized the healthy YoY revenue growth of 6.7% in INR and robust cash flow generation, with the company achieving a net income of Rs 4,257 Crores and improving capital efficiency metrics. “HCLTech delivered an INR revenue growth of 6.7% YoY, healthy given the global environment. EBIT margins came in at 17.1%, steady on YoY basis. We delivered PAT of Rs 4,257 Crores for the quarter, which translates to YoY growth of 20.4%. Our cashflow generation remains robust with LTM FCF at Rs 21,637 Crores, 133% of PAT and 88% of EBITDA. We remain committed to improving our capital efficiency and are pleased to report Last Twelve Month (LTM) ROIC for the company is up 350 bps YoY at 34.6% and for Services business is up 476 bps YoY at 42.8%,” he said.
- INR Revenue: Rs 28,057 crores, down 1.6% QoQ, up 6.7% YoY.
- USD Revenue: $3,364 million, down 1.9% QoQ, up 5.1% YoY.
- HCLTech Services Revenue: Down 1.9% QoQ, up 5.8% YoY in constant currency.
- Digital Revenue: Increased by 6.0% YoY, contributing 37.4% to Services.
- HCLSoftware Revenue: Up 3.5% YoY in constant currency.
- Annual Recurring Revenue (ARR): $1.01 billion, down 0.3% YoY.
Profitability and Return Metrics
C Vijayakumar, CEO and managing director, expressed satisfaction with the HCLTech Q1 Results, noting a 5.6% YoY revenue growth on a constant currency basis and a TCV of $2 billion in new business bookings, setting the stage for continued growth. “We are pleased to report another quarter of industry-leading performance with 5.6 % YoY revenue growth on constant currency basis. Our Q1 Revenue and EBIT performance was slightly better than our expectations. We clocked in $2B TCV of new business Bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies,” he said.
- EBITA: Rs 4,795 crores (17.1% of revenue), down 4.4% QoQ, up 7.5% YoY.
- Net Income: Rs 4,257 crores (15.2% of revenue), up 6.8% QoQ, up 20.4% YoY.
- Return on Invested Capital (ROIC): Company-wide at 34.6%, up 350 basis points (bps) YoY; Services at 42.8%, up 476 bps YoY.
- Operating Cash Flow (OCF): $2,722 million.
- Free Cash Flow (FCF): $2,604 million.
- Dividend: Rs 12 per share, marking the 86th consecutive quarter of dividend payout.
- Total Contract Value (TCV): $1,960 million in new deal wins.
Some of the Key Deal Reported in HCLTech Q1 Results
- Strategic partnership with a Fortune 100 technology company for Technical Assistance Centers in Asia.
- Implementation of Salesforce’s Slack integrated with WhatsApp for Banco do Brasil.
- Automation of digital marketing programs for State Bank of India using HCL Unica.
- Enhancement of security posture for a leading Europe-based food company using HCLSoftware’s BigFix platform.
- Several GenAI-based solution implementations for global technology and financial services majors.
People Metrics
- Total Employee Count: 219,401, with a net reduction of 8,080 due to divestiture.
- Freshers Added: 1,078.
- Attrition Rate: Long-term attrition at 12.8%, down from 16.3% in Q1 of last year.
Future Outlook
- Revenue Growth: Expected to be between 3.0% and 5.0% YoY in constant currency.
- Services Revenue Growth: Forecasted between 3.0% and 5.0% YoY in constant currency.
- EBIT Margin: Projected to be between 18.0% and 19.0%.
