{"id":126335,"date":"2022-01-18T05:50:04","date_gmt":"2022-01-18T10:50:04","guid":{"rendered":"https:\/\/44.250.171.167\/?p=126335"},"modified":"2022-01-26T12:37:07","modified_gmt":"2022-01-26T17:37:07","slug":"hcl-technologies-ltd-q3-fy22-earnings-conference-call-summary","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/hcl-technologies-ltd-q3-fy22-earnings-conference-call-summary\/","title":{"rendered":"HCL Technologies Ltd Q3 FY22 Earnings Conference Call Summary"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"HCL Technologies Ltd Q3 FY22 Earnings Concall\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/ooSvOWsTfQI?start=71&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from HCL Technologies Ltd (<a href=\"https:\/\/44.250.171.167\/symbol\/hcltech\/\">HCLTECH<\/a>) Q3 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>HCLTECH saw good success in its Products and Platform business, in terms of both renewals and new licenses in the quarter. Overall, growth was broad-based, with momentum across all geographies, segments and industry sectors.<\/li>\n<\/ul>\n<ul>\n<li>In terms of headcount, last quarter HCLTECH said it added 10,143 people and is in line to achieve 20,000 campus hires for FY22. The company has already added 15,000 people YTD. HCLTECH\u2019s attrition percent stood at 19% on an LTM basis.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Mukul Garg of Motilal Oswal asked about the unusual margin dip in the IT services vertical and what levers the company has to return to the 19% type margins for this vertical. CFO Prateek Aggarwal, said that the dip was unusual last year due to the very different supply situation in the market due to the pandemic. And on the levers, Prateek added that the company would like to get to the 19% kind of margins but said that it would take time. However, automation and other productivity measures are the biggest levers to reach that goal.<\/li>\n<\/ul>\n<ul>\n<li>Ankur Rudra from JP Morgan asks if there is any change in the company\u2019s medium to long-term strategy to deal with the demand environment and the market being dominated by smaller deals. CEO Vijayakumar answered that HCLTECH\u2019s pipeline has a good mix of small and large deals, though the inclination towards smaller deals is a little higher. Therefore, HCLTECH\u2019s engineering and R&amp;D services had a large number of small deals, which contributed to the growth.<\/li>\n<\/ul>\n<ul>\n<li>Sandeep Shah of Equirus Securities enquires about ESOP costs and if it would influence the lower margins guided for fourth quarter. CFO Prateek Aggarwal answered saying that ESOP is something that\u2019s part of the LTI plan and the company is converting about 30% of that cash element into RSUs. Prateek added that ESOPs are not incremental costs and it\u2019s not something that would make a bid difference to margins.<\/li>\n<\/ul>\n<ul>\n<li>Mihir Manohar from Carnelian Asset Management asks if cloud adoption could create strong opportunity for managed services. Vijayakumar said the company feels that cloud adoption is a tailwind for the infrastructure business. The company is building hyperscaler-specific migration and managed services factories to scale it, and HCLTECH sees that as a great tailwind for its business.<\/li>\n<\/ul>\n<ul>\n<li>Mihir also asked about the clawback of employee bonus of some of the retiring employees and if there is any margin effect because of that. CEO Vijayakumar commented that the effect is very insignificant.<\/li>\n<\/ul>\n<ul>\n<li>On a question asked by Surendra Goyal of Citigroup about P&amp;P full year guidance which implies a significantly bigger than the usual fees decline in the March quarter, CEO Vijayakumar answered that a lot of things happened in the last week of the quarter, which resulted in the company guiding it at 0-1%. HCLTEH added that it would like to stick to this guidance.<\/li>\n<\/ul>\n<ul>\n<li>Abhishek Shindadkar from Elara Capital enquired about the purchase cost of property and equipment intangible of 63 million &nbsp;in cash. &nbsp;CFO Prateek said that it\u2019s the normal run rate the company has in the region of 60 million to 65 million and most of it is IT equipment (laptops, servers, etc.). The company also clarified that it does not include intellectual property purchase or acquisition or anything like that.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from HCL Technologies Ltd (HCLTECH) Q3 FY22 Earnings Concall Management Update: HCLTECH saw good success in its Products and Platform business, in terms of both renewals and new licenses in the quarter. Overall, growth was broad-based, with momentum across all geographies, segments and industry sectors. In terms of headcount, last quarter HCLTECH said [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[9050],"class_list":["post-126335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-technology-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":128575,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":126335,"position":0},"title":"HCL Technologies Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"April 22, 2022","format":false,"excerpt":"https:\/\/youtu.be\/I7HKfq4Har4 Key highlights from HCL Technologies Ltd (HCLTECH) Q4 FY22 Earnings Concall Management Update: HCLTECH said, its services business over the last three quarters, have been consistently growing organically more than 5%, delivering one of the highest in the industry. The company crossed $10 billion in Services revenue alone over\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":131198,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":126335,"position":1},"title":"HCL Technologies Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"July 18, 2022","format":false,"excerpt":"https:\/\/youtu.be\/oBA93ez4p4g Key highlights from HCL Technologies Limited (HCLTECH) Q1 FY23 Earnings Concall Management Update: HCLTECH said it is planning to hire 10,000 plus freshers in 2Q23. Q&A Highlights: Sandip Agarwal from Edelweiss asked about current fresher intake estimate of 30,000 vs. the 34,000 to 35,000 number earlier. C Vijayakumar CEO\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"HCL Technologies Q1 2023 earnings infographic","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/07\/HCL-Technologies-Q1-2023-earnings-infographic.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/07\/HCL-Technologies-Q1-2023-earnings-infographic.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/07\/HCL-Technologies-Q1-2023-earnings-infographic.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/07\/HCL-Technologies-Q1-2023-earnings-infographic.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":171476,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-q2-fy26-earnings-results\/","url_meta":{"origin":126335,"position":2},"title":"HCL Technologies Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"October 13, 2025","format":false,"excerpt":"Company Overview: HCL Technologies Ltd is a leading global IT services company headquartered in India, ranked among the top five Indian IT firms by revenue. Since its IPO in 1999, HCL Tech has focused on transformational outsourcing, offering an integrated portfolio of software-led IT solutions, remote infrastructure management, engineering and\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"HCLTECH Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HCTECH.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HCTECH.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HCTECH.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HCTECH.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HCTECH.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HCTECH.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":143922,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-limited-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":126335,"position":3},"title":"HCL Technologies Limited Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"April 21, 2023","format":false,"excerpt":"https:\/\/youtu.be\/RN-qEY689Ag Key highlights from HCL Technologies Limited (HCLTECH) Q4 FY23 Earnings Concall Management Update: [00:02:30] HCLTECH had a good year with 13.7% revenue growth in constant currency and 18.2% operating margins. The services business grew 15.8%, while the software business grew 1.8%. [00:18:05] HCLTECH said its guidance for FY24 is\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":163023,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-ltd-q1-fy25-earnings-conference-call-insights\/","url_meta":{"origin":126335,"position":4},"title":"HCL Technologies Ltd Q1 FY25 Earnings Conference Call Insights","author":"Praveen","date":"July 12, 2024","format":false,"excerpt":"Key highlights from HCL Technologies Ltd (HCLTECH) Q1 FY25 Earnings Concall Financial Performance HCL Tech's Q1 revenue grew 5.6% year-on-year in constant currency. 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