HCL Technologies, India's fourth biggest IT services company with global operations, has posted robust growth in quarterly and annual revenues.
The company has posted 14% YoY growth in net income and revenues have crossed the US$ 5 billion mark.
The company announced its quarterly (Q4 of FY14) and annual (FY 14) results today in Noida, India. Annual revenues were up 14% YoY at US$5,360 million. Net income was up 42% YoY at US$1,037 million. In rupee terms, the annual revenues were up 28% and net income by 58%.
"It has been a satisfying year and the year in perspective has been good for us," said Anant Gupta, CEO, HCL Technologies. "We had three significant milestones in the year. Our net income crossed US$ 5 billion for the first time. That is important. Second, we booked significant amounts of bookings (Total Contract Value of the bookings exceed US$ 5 bn) and the beauty is it is well-balanced across service lines, geographies and segments. Third is that our revenues also crossed US$5 billion."
The company did best in Europe (24.9% YoY revenue growth), followed by Americas (12.2%) and then the Rest of the world (1.5%).
The company added 1 client in US$ 100 mn + category, 4 clients in US$ 50 mn + category and 16 clients in US$ 20 mn + category. The company's ROE (return on equity) was at all time high of 36%.
"With a year-on-year increase of 28% in revenues and 58% rise in net income HCL has posted a robust Financial Year performance which emphatically demonstrates the continued success and relevance of our overall strategy," said Gupta. "In FY14, the company crossed the US$ 5bn Revenue milestone and further evolved the key building blocks to deliver next generation propositions to our customers. Backed by this solid performance, we remain confident in our ability to continue delivering industry leading growth at HCL."
"The superior operating performance has been accompanied by efficient working capital management including DSO, high conversion of profits into cash and return on equity at historic high of 36%. Based on the sustained efforts, HCL has delivered another stellar year of EPS growth of 58% in FY'14. We have declared a dividend of 12 per share making this quarter the 46th consecutive quarter of dividend declaration," said Anil Chanana, CFO, HCL Technologies.
HCL said it has signed more than 50 transformational engagements with more than US$ 5bn of Total Contract Value in FY13-14. These engagements were well-distributed across all service lines and geographies. In verticals, the wins were led by Gen 2.0 propositions in momentum markets of Financial Services and Manufacturing.
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