HCLTech Delivers Another Year of Stellar Growth With Robust Deal Pipeline

HCLTech, a leading global technology company, today reported financial results for the fourth quarter and year ended March 31, 2023.

The company reported full year revenue $12.6 billion, up 9.6% YoY on the back of strong deal pipeline across its portfolio of digital, cloud, engineering and software. INR revenue for the year crossed the Rs 100,000 crore milestone while constant currency revenue was up 13.7%. Profit After Tax for the year came in at Rs 14,851 crores ($1.84 billion), up 10% YoY and at 14.6% of revenue.

During FY23, the company won 57 large deals – 32 in services and 25 in software – that translated into TCV (new deal wins) of $8.85 billion, up 6.6% YoY. Services revenue grew by 15.8% in CC and HCLSoftware Annual Recurring Revenue crossed $1 billion, up 5.2% in CC.

For Q4 FY23, constant currency revenue grew 10.5% YoY while the USD revenue came in at $3.23 billion, up 8.1% YoY. INR revenue was Rs 26,606 crore, up 17.7% YoY. During the quarter, the company won 13 large deals – 10 in services and 3 in software – that translated into a TCV (new deal wins) of $2.07 billion.

HCLTech’s total people count as on March 31, 2023 was 225,944, up 8.2% YoY. Net people addition for FY23 was 17,067, which included the hiring of 26,734 freshers. During Q4 FY23, net people addition was 3,674, which included 4,480 freshers. LTM Attrition during Q4 FY23 further moderated to 19.5%.

Read More: SalesTechStar Interview with Mike Myer, CEO and Founder of Quiq

“We have delivered a stellar performance in FY’23, crossing ₹ 1,00,000 crores of revenue powered by Industry leading services growth of 15.8% in constant currency. Our net new bookings for FY’23 grew 6.6%. Our pipeline is near an all-time high, which reflects our differentiated business mix and strong client demand for our offerings. We have added 3,674 employees this quarter and overall employee strength has now grown beyond 2,25,000. All these set us well in FY’24 for a healthy revenue growth in the 6-8% range with Operating Margins in 18 -19% range,” said C Vijayakumar, CEO & Managing Director, HCLTech.

“FY’23 concluded with resounding growth of 18.5% in INR and 13.7% in CC, with EBIT at 18.2%. This quarter, we have started publishing a new metric, Annual Recurring Revenue (ARR) for our Software business. It is heartening to note that ARR is at US$ 1Bn+ level, which grew at 5.2% YoY CC (ex. divested business). Profit After Tax (PAT) came in at ₹ 14,851 Cr (14.6%), growing 10% YoY, with EPS at ₹ 54.79. HCLTech Board is pleased to declare ₹ 18/share as the Dividend for the quarter, bringing the total to ₹ 48/share for FY’23, which is 87.5% of the EPS. Cashflow conversion remains robust with OCF / PAT at 121% and FCF / PAT at 110%,” added Prateek Aggarwal, CFO, HCLTech.

Read More: Improving The Customer Purchase Journey With QR codes

HCLTech also demonstrated significant progress in its sustainability agenda:

• MSCI ESG Ratings upgraded HCLTech’s rating to AA from A
• S&P Global Sustainability Yearbook 2023 has recognized HCLTech as an ‘Industry Mover’
• Included in Sustainalytics’ 2023 Top-Rated ESG Companies list in the Software & Services Industry segment & in the Asia Pacific Region