{"id":128575,"date":"2022-04-22T03:53:45","date_gmt":"2022-04-22T07:53:45","guid":{"rendered":"https:\/\/44.250.171.167\/?p=128575"},"modified":"2022-10-05T06:34:28","modified_gmt":"2022-10-05T10:34:28","slug":"hcl-technologies-ltd-q4-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/hcl-technologies-ltd-q4-fy22-earnings-conference-call-insights\/","title":{"rendered":"HCL Technologies Ltd Q4 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"HCL Technologies Ltd Q4 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/I7HKfq4Har4?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>) Q4 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>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 FY22.<\/li>\n<\/ul>\n<ul>\n<li>HCLTECH made record hiring in FY22 with 39,900 new additions. Attrition also remained lower than the industry at 21.9% on an LTM basis.<\/li>\n<\/ul>\n<ul>\n<li>For FY23, HCLTECH is guiding for 12-14% revenue growth in constant currency, while operating margins is expected in the range of 18% to 30%.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Kumar Rakesh from BNP Paribas asked about the product and platform segment needing proactive investments. C Vijayakumar CEO replied that whatever investments that HCL plans to make are already part of margin guidance. And as HCLTECH has a large portfolio of products, it has the flexibility to dial down the investment on some and dial-up the investment on others.<\/li>\n<\/ul>\n<ul>\n<li>Kumar Rakesh from BNP Paribas enquired about the software product business revenue split. C Vijayakumar CEO replied that less than 30% comes from Product Licenses, 67% or two-thirds comes from Subscription and Support services and 3-5% from Professional services.<\/li>\n<\/ul>\n<ul>\n<li>Ankur Rudra of J.P. Morgan clarified if the payout this year a one-off and if the investors view any change in the sustainable payout ratios going forward. C Vijayakumar CEO answered that it\u2019s in line with HCL\u2019s guidance of a minimum of 75% of net income. And as a strategy, there is not too much of a capex plan or any acquisition plan of any reasonable size. So HCL wanted to make sure it pays out as much as it can.<\/li>\n<\/ul>\n<ul>\n<li>Gaurav Rateria from Morgan Stanley asked that in Europe macro is more volatile than last year, while large deal flow wins were announced in Europe. C Vijayakumar CEO answered that on the deal flow, it seems like it\u2019s in proportion to the overall business. 60% is from North America, 28% odd from Europe. So, HCL is in a good situation from a secular growth.<\/li>\n<\/ul>\n<ul>\n<li>Gaurav Rateria from Morgan Stanley also asked that in terms of 18% to 20% band, what would be the impact of salary hike. Prateek Aggarwal CFO replied that HCL has factored in normal kind of increments for now but kept some space. And also while these efforts are well underway, it will probably take a few quarters to fully come back to HCL.<\/li>\n<\/ul>\n<ul>\n<li>Prashant Kothari from Pictet enquired about margins being slightly varying over the years and how HCL feels about its ability to make margins. C Vijayakumar CEO replied that over the last five years margins have been stable except the COVID induced savings in the last couple of years. HCL expects to see the margins increase incrementally from here based on all the interventions including rate hikes and talent strategy.<\/li>\n<\/ul>\n<ul>\n<li>Prashant Kothari from Pictet asked if HCL\u2019s competitiveness and efficiencies has largely remained the same relative to the peers that it competes against. C Vijayakumar CEO answered that HCL\u2019s competitiveness has improved because of very strong application and data modernization skill sets and some of the solution accelerators, which are a part of that.<\/li>\n<\/ul>\n<ul>\n<li>Mihir Manohar of Carnelian Asset enquired about the weak optimism in terms of demand environment. C Vijayakumar CEO replied that from HCL\u2019s vantage point, compared to the commentary in December to now, HCL feel more optimistic, because its pipeline is higher than what it was in December. It\u2019s the second highest HCL has ever had.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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 FY22. HCLTECH made record hiring in [&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":[5075],"class_list":["post-128575","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-it-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":126335,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-ltd-q3-fy22-earnings-conference-call-summary\/","url_meta":{"origin":128575,"position":0},"title":"HCL Technologies Ltd Q3 FY22 Earnings Conference Call Summary","author":"Praveen","date":"January 18, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=ooSvOWsTfQI&t=71s 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\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":143922,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-limited-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128575,"position":1},"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":131198,"url":"https:\/\/alphastreet.com\/india\/hcl-technologies-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":128575,"position":2},"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. 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