HCL TECHNOLOGIES LTD. - 532281 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Subject: Release - 'HCL Technologies marks $10B Revenue milestone, thanks Employees Worldwide with Special Bonus' Dear Sir/ Madam, Enclosed please find a release on the captioned subject being issued by the Company today. This is for your information and records. Stocks To Watch: State Bank, Biocon, HCL Technologies
The country's largest lender State Bank of India, on Thursday said that its net profit in quarter ended December 2020 fell 7 per cent annually to Rs 5,196 crore HCL TECHNOLOGIES LTD. - 532281 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Subject: Release - 'HCL Signs 5-Year Digital Workplace Services Agreement with Airbus' Dear Sir/ Madam, Enclosed please find a release on the captioned subject being issued by the Company today. This is for your information and records. HCL TECHNOLOGIES LTD. - 532281 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Subject: Release - 'HCL Technologies and Alteryx announce global strategic alliance to accelerate analytics automation and digital transformation for Global 2000 enterprises ' Dear Sir/ Madam, Enclosed please find a release on the captioned subject being issued by the Company today. This is for your information and records.
Buy HCL Technologies; target of Rs 1300: Motilal Oswal
Motilal Oswal is bullish on HCL Technologies has recommended buy rating on the stock with a target price of Rs 1300 in its research report dated January 16, 2021.
HCL Technologies beats guidance, but tempers Q4 expectations
HCL Technologies (HCL Tech) reported strong results in the recently concluded quarter ended December 2020 beating its own revenue and margin guidance for third quarter FY21. The third largest software services company in India recently entered the elite club of the top ten most valued Indian companies by market capitalization. Quick Takes HCL Tech signed 13 net new transformational deals and saw a 35% sequential jump in large deals in Q2 FY21. The company has acquired DWS Limited, a leading Australian IT business to enhance HCL Tech’s contribution to digital initiatives in Australia and New Zealand Revenue growth guidance for Q4 is in the range of 2-3% quarter-on-quarter and earnings before interest and tax (EBIT) margin guidance is 21.0-21.5% HCL Software division bagged deals worth $91 million in the December quarter HCL Tech beats Q3 FY21 guidance In the quarter ended December 2020, HCL continued with the same growth momentum investors saw in the previous quarter. It surprised the street and impressed yet again with a strong margin performance. Consolidated revenues came in at Rs 19,302 crore in Q3 FY21 compared to Rs 18,135 crore in the same period a year ago. In dollar terms, revenues were at $2.6 billion rising 4.4% sequentially and 2.9% YoY. The company had guided for a 1.5-2.5% QoQ revenue growth. The company delivered an EBIT margin of 22.9%, the highest level in the past 22-quarters. Net profit (PAT) rose 35% YoY to Rs 3,969 crore in the December quarter. In terms of geographies, Americas grew 3.2% YoY and 2.2% sequentially, while revenues from Europe saw 6.3% sequential growth, but fell 1% on a YoY basis. Rest of the world, which outperformed last quarter with double digit growth, saw revenues flat YoY, and declining 4.5% sequentially. In terms of verticals, life sciences & healthcare were fairly insulated from the pandemic’s impact as revenues grew 13% YoY in the December quarter. This was helped by pharmaceuticals, payer providers and medical devices sub-verticals. Retail & CPG (consumer packaged goods), which made a strong recovery last quarter, maintained a stable momentum with 3% YoY growth. Manufacturing returned to a strong positive sequential growth of 5.6%, but on a YoY basis, there was a 13% decline in revenues. Financial services revenues were flat on a YoY basis, while technology revenues rose 20% YoY. And lastly telecommunication, media, & entertainment revenues declined 7% in Q3 FY21. Speaking on Q3 results, C Vijayakumar, President and CEO of HCL Tech, said, “Our strong pipeline and good order book keeps me very optimistic about our growth trajectory moving forward. I strongly believe we have a uniquely differentiated value proposition through our combination of solutions and services, and strong client relationships. All of this will help us gain significantly from the increased market activity and the momentum that we are seeing.” Mode 1-2-3 have opened up avenues for future growth HCL Tech has been an outperformer among the ’Big 4’ IT services companies and has reported industry leading growth over the past four years. The company’s revenues grew at a CAGR of 23% over the past four years, while net profits have risen at a CAGR of 19%. Closest peers, Infosys and TCS saw their revenues grow at 10%, and net profits at 5% and 7%, respectively. As automation, cloud, artificial intelligence, Internet of Things (IoT) and digitalization transformed the technology landscape, HCL Tech reinvented itself in 2016. The company implemented a new strategic blueprint called Mode 1, 2 and 3. Mode 1 would help clients to sustain leadership positions in their core businesses, while Mode 2 would help them take the digital leap and adapt to newer technologies such as IoT, cloud, cyber-security etc. Mode 3 offerings would help clients target specific next-generation opportunities through scalable and ready-to-deploy products and platforms. The company has made investments over the last few years in next-generation technologies. After the onset of the pandemic, cloud migration, digital workplace, IoT, newer products & platforms and cyber security became critical for enterprise transformation. Thus, post the pandemic, as clients increased their digital transformation spends, HCL’s mode 2 and 3 strategies helped it reap benefits. In fact, in Q3 FY21, according to the management, the strong demand for IT services was driven by three main factors, firstly pent-up demand in sectors such as manufacturing and retail, and strengthening of business models by least impacted sectors such as life sciences & healthcare, food, grocery. Second growth driver has been mode 2 businesses, with digital and cloud services growing rapidly, as companies modernize their core processes for differentiation, speed to market, efficiency and scalability. Mode 2 and 3 revenue mix represented 39% of total revenues in December quarter FY21 growing 25% and 4% YoY respectively. Sequential revenue growth stood at 11% and 7% respectively. Mode 2 revenues have crossed $500 Mn milestone last quarter and aided overall company margins substantially. EBIT Margin for mode 2 stood at 22% expanding 680 bps YoY. HCL Software continues rapid growth HCL Software was carved out by HCL Tech and houses select IBM products acquired by the company in December 2018. The company bought these products for an estimated $1.8 billion. Analysts had given a lukewarm response to the acquisition with the stock declining 8% after the IBM deal was announced. HCL Software division, or products & platforms business, comes under the Mode 3 bucket. Revenue growth for products & platforms in Q3 was 9.3% YoY and 8.3% sequentially FY21. In a seasonally strong December quarter, HCL Software booked $91 million new deals, a 250% rise in YoY terms. To make its software business profitable, HCL outlined an ambitious roadmap, starting with stabilizing the existing customer base with transactional volumes and renewals. The next step was modernizing products through new releases of DX, Domino, App Scan, Big Fix and most recently Volt, and aggressive market expansion. In the present challenging environment, new demand is coming from eCommerce, digital marketing, digital experience and cyber security. Thus, products like Appscan, Big Fix, DX are witnessing traction. Speaking on HCL Software and the limited impact COVID19 had on its revenues, Vijayakumar said the company’s software business is diversified across industries and geographies. With the deal sizes being relatively small, and the products are mission-critical with a lot of long-standing deployments, and the business is “intrinsically sticky”. After growing at an accelerated pace over the past four years and hitting 11% organic growth - the highest in the industry, HCL tech has entered the post pandemic era in a position of strength. In the present scenario, both digital business and products & platform business are driving growth. Apart from strong growth numbers, the company signed 13 net new transformational deals and there was a 13% YoY jump in value of large deals. But the company has guided for a subdued 2-3% sequential revenue growth in constant currency terms for the last quarter of FY21, even after inclusion of its DWS acquisition. It remains to be seen if the business can keep the momentum going in deal growth and innovation.
Buy HCL Technologies; target of Rs 1150: ICICI Direct
ICICI Direct is bullish on HCL Technologies has recommended buy rating on the stock with a target price of Rs 1150 in its research report dated January 14, 2021. HCL TECHNOLOGIES LTD. - 532281 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Subject: Release - 'HCL Technologies and University of California, Berkeley to Partner on advanced Health Technology Collaborative Laboratory' Dear Sir/ Madam, Enclosed please find a release on the captioned subject being issued by the Company today. This is for your information and records.
Buy HCL Technologies; target of Rs 1140: Dolat Capital Market
Dolat Capital Market is bullish on HCL Technologies has recommended buy rating on the stock with a target price of Rs 1140 in its research report dated January 15, 2021.
What should investors do with HCL Technologies after Q3 result: buy, sell or hold?
Dollar revenue during December quarter stood at $2,617 million, up from $2,507 million in the second quarter of FY21.