HCLTech announces record deal bookings and strong Q2 FY24 financial performance

HCLTech, a foremost global tech juggernaut, has unveiled impressive financial outcomes for the quarter culminating on September 30, 2023. Spearheaded by record deal bookings amounting to $4 billion, the company showcases an exceptional QoQ growth of 159% and YoY growth of 67%.

During this quarter, HCLTech observed a revenue surge, reaching $3.2 billion, denoting a 4.6% YoY increase. The revenue in constant currency (CC) illustrated a 3.4% YoY and 1% QoQ hike. Service-related revenues saw a 3.4% YoY expansion in CC.

Highlighting other financial achievements, the EBIT margin climbed from 17% in the previous quarter to 18.5%. HCLSoftware’s annual recurring revenue (ARR) touched $1.03 billion, experiencing a 3.9% YoY growth in CC terms.

Significant revenue expansion was noted in the Americas and Europe, both at 3.9% YoY (CC). Leading the industry vertical growth were Financial Services at 12.5% YoY (CC) and Lifesciences & Healthcare at 9.8% YoY (CC). As a token of appreciation to shareholders, a dividend of ₹12 per equity share was declared.

HCLTech announces record deal bookings and strong Q2 FY24 financial performance. Photo courtesy of Raghukraman/Wikimedia Commons.

C Vijayakumar, CEO & Managing Director of HCLTech, articulated, “Our revenue growth, operational efficiency, and the monumental $4 billion bookings this quarter, emphasized by a standout mega deal, not only exhibit our execution capabilities in a dynamic market but also augur well for our medium-term growth trajectory.”

Projecting ahead, HCLTech forecasts FY24 organic revenue to soar between 4-5% YoY in CC. Including the ASAP acquisition, revenue growth is predicted at 5-6% YoY in CC, with the EBIT margin guidance for FY24 stabilized at 18-19%.

Prateek Aggarwal, HCLTech’s Chief Financial Officer, highlighted, “The 8% YoY growth in Q2 FY24 is complemented by significant margin improvements and deal achievements. Factors such as EBIT margin’s rise to 18.5% and LTM ROIC standing at 32.2% validate our robust financial standing.”

In the human resources spectrum, the company reported a decreased attrition rate, down to 14.2% from the previous year’s 23.8% in Q2 FY23.

HCLTech continues its pioneering journey by adopting next-gen technologies like GenAI and cloud computing. The company’s recent deal wins include partnering with a Europe-based financial services giant to enhance its global compliance via GenAI and collaborating with a prominent tech firm to optimize their product developer support using AI and ML.