HCL Technologies Q4 FY 22 Research Tear Sheet

HCL Technologies (Hindustan Computers Limited) is an Indian multinational company. It mainly deals with information technology and consulting. It was founded on 11^th August 1976. The founder is Shiv Nadar. It is headquartered in Noida, Uttar Pradesh, India. The company has almost 50 offices with an employee count of 208,877 (2022). The main focus of the company is software & services.  The stocks are traded on both BSE and NSE.

Key Financial Highlights

Rs in Crores	31-03-2022	31-03-2021
Revenue	22,597	19,641
Total Income	22,914	19,855
Profit for the period	3,599	1,111
EPS- Basic	13.27	4.06
EPS- Diluted	13.26	4.06

Standalone Highlights

Revenue grew 0.5% QoQ & 11.0% YoY to US$ 2,993 million in terms of USD.

EBITDA margin stood at  22.3% and EBIT margin stood at 17.9%.

Net Income increased by 3.7% QoQ & up 18.3%1 YoY to US$ 475 million.

Revenue grew 1.2% QoQ & up 15.1% YoY to ₹ 22,597 crores in terms of INR.

Net Income improved by 4.4% QoQ & 23.9%1 YoY to ₹ 3,593 crores.

The service revenue increased 5.0% QoQ & 17.5% YoY in Constant Currency basis.

Consolidated Highlights

Revenue for FY 2022 increased by 12.8% YoY in US$ and 12.7% YoY in Constant Currency basis to US$ 11,481 million. In terms of INR , Revenue grew 13.6% YoY to ₹ 85,651 crores.

Net Income  increased by 4.3%1 YoY to ₹ 13,499 crores. In terms of USD Net Income improved  by  3.2%1 YoY to US$ 1,807 million.

EBITDA margin stood at 24.0% and EBIT margin at 18.9%.

Business Outlook

The company anticipates that the revenue will grow by 12% to 14% in constant currency basis. The EBIT margin for FY 2023 is expected in the range of 18% to 20%. The company has decided to reduce greenhouse gas emissions, partly by 2030 and to reach Net Zero by 2040.

Management Updates

The company has declared dividend of ₹ 18/.

The total headcount has reached 208,877 with Net Addition of 39,900 during the year.

Business Updates

HCL Technologies entered into a strategic partnership to acquire Starschema, a leading provider of data engineering services. It is based in Budapest, Hungary.

The company launched two new 5G applications to help mobile network operators to optimize the client experience and reduce energy consumption. 

HCL Technologies has obtained ISO 13485 certification for its European and US hardware depo Operations.

HCL Technologies  has signed   52 new large deals including 10 in Q4.

HCL Technologies have entered into strategic partnerships with Husqvarna and Novo Nordisk.