There was fast revenue growth in Client Partner accounts across geographies and verticals. There was a secular trend of increasing revenue share of Top 5, 10 and 20 customers
HCL had a glorious 2018. There was consistent execution of the business strategy by meeting its guidance on revenue and margin for the second year in a row. HCL crossed the significant milestone of $2 billion run rate of quarterly revenue this quarter. For the first time, HCL crossed Rs. 50,000 crores of revenue in FY18. HCL had an annual revenue in FY 2018-19 of USD 8,632 Mn, as against US$7,838 Mn, in 2017-18.
HCL registered a full year revenue of US$8.6 Bn in 2018, a growth of 12.4% YoY. There was 13.3% industry-leading growth in Financial Services, enabled by growth in digital services. It witnessed secular growth across most other verticals in FY 18. There was healthy growth in all geographies, led by US with 13.8%. Engineering and R&D Services were enabled by organic, IP partnerships and acquisitions. HCL’s vertical-led Go-to-Market approach enable the momentum in Mode 2 & 3 businesses.
HCL signed 15 transformational deals in Q4 2018, representing a well-balanced mix of Mode 1 & Mode 2 services, geographies and verticals. There were 63 other transformational deals for the financial year. Across the Mode 2 Services, HCL saw strong expansion in deal sizes and value. There were 26 customers in Mode 2 with revenue in excess of $10 M, contributing to 49% of M2 revenues. In Mode 3, HCL launched the first wave of Managed Services Edition (MSE) products, apart from adding several products to its portfolio through a mix of Organic IP, acquisitions and IP partnerships. Mode 1-2-3 strategy has been continuing to make considerable progress, and the results were visible in FY 18.
In client partnerships, there was faster revenue growth in Client Partner accounts across geographies and verticals. There was a secular trend of increasing revenue share of Top 5, 10 and 20 customers. HCL continues to increase the wallet share of many customers on next gen Mode 2 services.
HCL is also a leader in multi-channel customer engagement services for life sciences and consumer packaged goods (CPG) industries. It has expertise in the clinical, pharmacovigilance, and pharma sales support domains, and strong partnership with industry leading products. HCL’s Mode 2 Digital capability, combined with the C3i depth, is to become more patient-centric, and offer services to IT and business stakeholders to improve healthcare outcomes.
A key player in hybrid data management, cloud integration, and analytics solutions HCL owns market-leading products, such as Actian Vector, Actian DataConnect and Actian X. This enhances HCL’s Mode 3 offerings. When combined with HCL’s Mode 2 solution offerings a powerful proposition to harness the power of hybrid data.
In FY’19, HCLT delivered industry-leading revenue growth at 11.8% YoY in constant currency (CC) exceeding the upper end of the guided range. In addition, the EBIT margin at 19.5% is within the guided range for FY’19. HCL continued its strong deal win momentum in Q4, signing 17 transformational deals, reflecting a strong mix of Mode 1 and Mode 2 services. These deals were led by verticals, such as Retail & Consumer Packaged Goods, Manufacturing, Public Services and Financial Services. A total of 78 transformational deals have been signed in FY’19.
—C VIJAYAKUMAR President and CEO