HCL Technologies Ltd.’s fourth-quarter revenue rose in line with estimates, led by deal wins and digital transformation. Attrition fell.
Business Environment
HCL Technologies won deals worth $2,260 million in the fourth quarter compared with $2,135 million in the previous three months. It won six large service deals and four product deals from January to March.
"Our overall growth on YoY basis stands at 12.7% which is better than the guidance led by strong momentum in Digital, Cloud and Engineering
services," said C Vijayakumar, chief executive officer and managing director.
The IT company added 39,900 new employees during the year, taking its total headcount to 208,877. "We continue to invest proactively to create a larger talent pool to address the demand," Vijayakumar said.
Other Highlights (QoQ)
IT and business services revenue rose 5.2% to $2,199 million.
Engineering and R&D services revenue increased 3.9% to $490 million.
Products & platforms revenue fell 24% to $304 million.
Attrition fell to 9.9% from 19.8% as of March.
Peers such as Tata Consultancy Services Ltd. and Infosys Ltd., too, saw their revenue and net profit rise sequentially in the fourth quarter, but margin came under pressure as attrition inched up.
Infosys lowered its revenue growth guidance for FY23 compared with FY22, while TCS retained its double-digit forecast.
Shares of HCL Tech closed 9.8% higher before the results were announced on Thursday compared with a 1.49% gain in benchmark Nifty 50.
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