HCL Technologies: Q3FY23 Result Update
19-01-2023

Market Cap: Rs. 3,02,400 Cr

CMP 1,110 | P/E 20x FY23

Results	INR Cr.	Y-o-Y Growth	Comments
Revenue	26,700	19.6%	Top performing verticals were Life Sciences & Healthcare, Manufacturing and Telecom & Media, delivering sequential growth of 5.5%, 4.9% and 4.5% in CC respectively.
EBIT	5,228	22.8%	Improved EBIT of 19.6% driven by improvements in services business
PAT	4,096	19.0%	Net Margin came in at 15.3% from 15.4% YoY

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Key Highlights:

·Company won 17 large deals – 7 services and 10 software, led by themes including operating model transformation, cloud adoption and vendor consolidation across industry verticals including Financial Services, Retail & CPG and Manufacturing.

·HCLSoftware announced a multi-year partnership with the Formula One team Scuderia Ferrari with a focus on supplying high performance precision technology.

·Services business grew 15.4% y-o-y and 2.2% sequentially in constant currency.

·Geography growth was once again led by Europe at 7.2% sequentially in constant currency, followed by Americas at 0.5% QoQ in constant currency.

·Employee count at quarter end was 2,22,270. Net Additions of 2945, LTM Attrition came in at 21.7%

Management Outlook:

·Management sees continuing demand visibility in themes like IT operating model transformation and cloud adoption.

·Management has guided 13.5-14% YoY growth for company revenue in constant currency and 16-16.5% YoY growth in service revenue in constant currency for FY23.

·Management has guided that Q4 will be a seasonally weak quarter as a P&P performance peaks in Q3 with renewals and new deal signings.