HCL Technologies Ltd.’s quarterly revenue rose in line with estimates, aided by deal wins and digital transformation.
Business Environment
HCL Technologies won deals worth $2,054 million in the first quarter compared with $2,260 million in the previous three months. It won seven large service deals and nine product deals from April to June.
Even as concerns of a slowdown persist, the company's deal pipeline is at an all-time high, Chief Executive Officer C Vijayakumar said. "Customers are continuing with transformation programmes. We may see small projects getting deferred but there's no structural impact."
The software company added net 2,089 new employees during the quarter, taking its total headcount to 2,10,966. The company has a target to hire 30,000-35,000 new employees in the current fiscal.
"We are still seeing heightened attrition and it may increase in this quarter also," Chief Human Resources Officer Apparao VV said, adding that the churn may start stabilising in a quarter to two.
Other Highlights (QoQ)
IT and business services revenue rose 2% to $2,201 million.
Engineering and R&D services revenue increased 3.7% to $503 million.
Products & platforms revenue fell 5.1% to $334 million.
Shares of HCL Tech closed 1.85% lower before the results were announced on Tuesday compared with a 0.97% loss in benchmark Nifty 50.
(Corrects an earlier version that misstated the attrition number)
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