HCLTech Delivers Another Year of Stellar Growth With a Strong Deal Pipeline

  • FY23 constant currency revenue up 13.7% YoY
  • In FY23, the company won 57 large deals with TCV (New Deal Wins) of $8.85 billion
  • Net addition of 17,067 people, including 26,734 freshers, in FY23
  • Full year dividend of Rs 48 per share, with payout ratio at 87.5%.

The fourth quarter and year-end financial results for HCLTech, a top global technology company, were released today.

On the strength of a strong deal pipeline across its portfolio of digital, cloud, engineering, and software, the company reported full-year revenue of $12.6 billion, an increase of 9.6% YoY. Revenue in INR for the year exceeded the Rs 100,000 crore mark, and revenue in constant currency increased by 13.7%. The annual profit after tax was Rs 14,851 crores ($1.84 billion), up 10% year over year and accounting for 14.6% of revenue.

The company closed 57 significant deals in FY23-32 in services and 25 in software-resulting in TCV (new deal wins) of $8.85 billion, up 6.6% YoY. 15.8% more services revenue was generated in CC, and 5.2% more services revenue, or $1 billion, was generated by HCLSoftware annually.

Constant currency revenue increased by 10.5% YoY in the fourth quarter of FY23, while USD revenue increased by 8.1% YoY to $3.23 billion. Revenue in INR was 26.606 crore, up 17.7% year over year. The company closed 13 sizable deals during the quarter, 10 in the services sector and 3 in the software sector, for a TCV (new deal wins) of $2.07 billion.

HCLTech had 225,944 employees as of March 31, 2023, an increase of 8.2% YoY. In FY23, there were a total of 17,067 new hires, including 26,734 freshmen. 4,480 freshmen were among the 3,674 net new hires during Q4 FY23. LTM Attrition decreased further to 19.5% in Q4 FY23.

“In FY’23, we delivered a stellar performance, crossing 1,00,000 crores in revenue, driven by industry-leading services growth of 15.8% in constant currency. For FY’23, our net new bookings increased 6.6%. Our pipeline is almost at an all-time high, which is a result of our unique business mix and the high level of client demand for our products. This quarter, we hired 3,674 more people, bringing our total employee strength to more than 2,25,000. All of these prepared us for a strong revenue growth in the 6-8% range and operating margins in the 18–19% range in FY’24, according to C Vijayakumar, CEO & Managing Director, HCLTech.

“FY’23 came to an impressive conclusion with growth of 18.5% in INR and 13.7% in CC, with 18.2% for EBIT. For our software business, we have started publishing a new metric called Annual Recurring Revenue (ARR) this quarter. It is encouraging to see that ARR has reached US$ 1 billion and above, growing at 5.2% YoY CC (excluding divested business). EPS was 54.79, and Profit After Tax (PAT) was 14,851 Cr (14.6%), up 10% year over year. The HCLTech Board is pleased to declare a quarterly dividend of 18 rupees per share, bringing the total for FY’23 to 48 rupees per share, or 87.5% of the EPS. Prateek Aggarwal, CFO of HCLTech, continued, “Cashflow conversion remains strong with OCF / PAT at 121% and FCF / PAT at 110%.

Additionally, HCLTech showed a significant improvement in its sustainability agenda:

  • MSCI ESG Ratings upgraded HCLTech’s rating to AA from A
  • S&P Global Sustainability Yearbook 2023 has recognized HCLTech as an ‘Industry Mover’
  • Included in Sustainalytics’ 2023 Top-Rated ESG Companies list in the Software & Services Industry segment & in the Asia Pacific Region

The HCLTech

More than 225,900 people call HCLTech home in 60 different countries. The company provides industry-leading capabilities focused on digital, engineering, and the cloud, supported by a wide range of technology services and products. Providing industry solutions for Financial Services, Manufacturing, Life Sciences and Healthcare, Technology and Services, Telecom and Media, Retail and CPG, and Public Services, we collaborate with clients in all key verticals. As of the March 2023 end of the 12-month period, combined revenues were $12.6 billion. Visit hcltech.com to find out how we can supercharge progress for you.