Key Highlights (for the quarter ending September 2020)
1. HCL signed 15 transformational deals, led by key industry verticals including life sciences and healthcare,
public services (energy & utilities) and manufacturing.
2. Broad based performance in Q2 with all growth engines firing. All the Geographies / Segments / Verticals
return to smart positive sequential growth.
3. Strong revenue growth at 4.5% QoQ in constant currency accompanied with expansion in margins on both
YoY and QoQ basis.
– EBITDA at 26.6% and EBIT at 21.6% expanded by 320 bps and 160 bps respectively (on YoY basis).
4. Mode 2 revenue exceeds US$ 500 mn milestone; EBIT Margin at 18.5% expanding 450 bps (on YoY basis).
5. Declared Dividend of ` 4 /- per share, being 71
st consecutive quarter of dividend pay-out.
6. IT Services attrition (LTM basis) at 12.2%, down 470 bps YoY.
7. Cash Generation and conversion continues to be very robust.
“These unprecedented times and the volatile global business environment have changed the way organizations operate. Enterprises are accelerating the adoption of technology and sharpening their focus on being resilient and better prepared for unpredictable situations. As businesses rethink, redefine and refine their ways of working, it has become imperative for them to adopt sustainable practices that complement their agile business models. We believe that business has a collective social responsibility to ensure that stakeholders have every advantage to succeed. At HCL, we are committed to ensuring the socio-economic development of the communities we engage with around the world.” said Shiv Nadar, Chief Strategy Officer, HCL Technologies Ltd.
“We have delivered a stellar Q2 performance with a sequential revenue growth of 4.5% in constant currency and 21.6% EBIT margin. This growth momentum was driven by our continued leadership in Digital Transformation and Cloud businesses and a strong stability in the Products & Platforms segment, all of which continue to open diverse growth avenues for us. Our investments over the last few years in next-gen technologies have held us in good
stead during these difficult times and position us strongly to leverage the emerging market opportunities.” said C Vijayakumar, President & CEO, HCL Technologies Ltd.
“We are delighted with the all-round Q2 FY’21 performance. All engines of growth are firing, and our margins have increased significantly with EBITDA at 26.6% and EBIT at 21.6%, expanding by 320 bps and 160 bps respectively on YoY basis. The standout performance for the quarter has been the cash generation and conversion ratios. Our Operating Cash Flow (OCF) & Free Cash Flow (FCF) stand at handsome US$ 2,692 mn and US$ 2,444 mn
respectively on Last-Twelve-Month basis, with OCF/NI and FCF/NI conversion at an impressive 161% and 146% respectively.” said Prateek Aggarwal, CFO, HCL Technologies Ltd.
HCL Technologies has earned the prestigious designation in Forbes’ fourth-annual list of the World’s Best Employers 2020, ranking #30 overall and making it the top ranked company among the multinationals
headquartered in India.
Forbes partnered with market research firm Statista to compile the ranking by surveying 160,000 full-time and
part-time workers from 58 countries and working for businesses with operations in multiple nations or regions. Surveys were conducted on a rolling basis from June to July, and participants were asked to rate their willingness to recommend their own employers to friends and family. They were also asked to rate their satisfaction with their employers’ Covid-19 responses, and score their employers on its image, economic footprint, talent development, gender equality and social responsibility. The final list is composed of 750 multinational and large corporations headquartered in 45 countries.
HCL Technologies was given the highest governance quality score of 1st decile from Institutional Shareholder
Services (ISS). The score of 1st decile indicates higher quality and relatively lower governance risk. The score is derived after reviewing four key tenets of board structure, shareholder rights, compensation and audit & risk oversight.
In Q2 FY’21, HCL signed 15 transformational deals, led by key industry verticals including life sciences and healthcare, public services (energy & utilities) and manufacturing.
HCL announced its intent to acquire DWS Limited, a leading Australian IT, business and management consulting group. DWS provides a wide range of IT services including digital transformation, application development & support, program & project management and consulting. This acquisition will strongly enhance HCL’s contribution to digital initiatives in Australia and New Zealand while strengthening its client portfolio across key industries.
HCL Software continued its operational excellence in Q2 FY’21, with nearly 5,000 sales transactions. The number of unique customers signed in the last year has increased to over 12,000. HCL Software’s continued investment in its products resulted in 20 major and minor product releases this quarter. Most notable were the product announcements of Unica Discover, OneDB, and Automation Power Suite.
HCL and Google Cloud announced the expansion of their strategic partnership to bring HCL’s Actian portfolio,
starting with Actian Avalanche, to Google Cloud. Actian Avalanche is a high-performance hybrid cloud data
warehouse designed to power an enterprise’s most demanding operational analytics workloads.
HCL announced the opening of its first European Cybersecurity Fusion Center (CSFC) in Gothenburg, Sweden.
The state-of-the-art security operations and response facility will help European organizations comply with local
regulations concerning data sovereignty. The center will have multi-domain security teams, processes and cutting-edge analytics which will enable organizations to detect threats faster and resolve incidents efficiently.
HCL inaugurated its first Global Delivery Center in Sri Lanka in the presence of the Honourable Prime Minister
of Sri Lanka, Shri Mahinda Rajapaksa and key government dignitaries and HCL officials. A key part of HCL’s
business and development strategy in Sri Lanka will be to use a local talent pool of Sri Lanka for global
HCL’s Value Portal, a unique grassroots innovation platform that enables employees to contribute their ideas and create value for customers and HCL, delivered customer-endorsed value worth $380M and generated 3,038 ideas and 1,380 implementations in Q2 FY’21.
HCL joined the NVIDIA Partner Network (NPN) to pursue expanded opportunities in the Artificial Intelligence
(AI) space. It also announced the launch of NEXT.ai, HCL’s AI lab, focused on upskilling engineers and architects utilizing AI solutions across hardware and software technology stacks. This will enhance their capabilities to build AI-led solutions for multiple HCL clients across industry verticals.
HCL announced its collaboration with PTC, an industry leader in augmented reality & IoT, and HPE, a global
edge-to-cloud Platform-as-a-Service company, to take its Real-Time Manufacturing Insights (RMI) solution to
the next level. With this partnership, HCL can now deliver a streamlined, pre-bundled, ready-to-deploy
configuration for the most challenging manufacturing environments.
HCL announced the availability of its Real-time In-store Insights (RII) consulting offering on Microsoft Azure
Marketplace, an online cloud marketplace providing tailored line-of-business solutions. The RII offering aims to
leverage IoT-powered insights to reimagine the retail space and transform the shopping experience.
HCL, in collaboration with blockchain software firm R3 launched BUILDINGBLOCK — a blockchain platform
created to streamline business property insurance for multinational companies. This platform enables insurance
companies to craft a master policy document by enabling real time data flow in an easy, cryptographically secure and immutable manner.
Continuing its tradition of ‘ideapreneurshipTM’ and a culture of innovation, HCL filed 10 patents in Q2 FY’21.
Patents filed were in areas such as software development, AI, next-generation technologies, automation, and data analytics. Patents were granted in the areas of Machine Learning (ML), IoT, solar energy and functional simulations.
HCL organized ‘Inspire for Better, The Economist Virtual Roundtable’ – a global CXO Thought Leadership Campaign and Partnership for speeding up innovation – employing lessons from Covid-19 for long-term success featuring C-level executive from global enterprises.
HCL organized the ‘Inspired Series’ – a series of exclusive conversations with the celebrated Australian Cricket Team for an inspiring insight into leadership, innovation, resilience and drive behind the best performances.