HCL Tech­nolo­gies

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

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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

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