HCL Technologies (HCLTECH) — concall transcript

📢 Key Event
HCL Technologies reported Q2 FY'25 revenue growth of 6.2% in constant currency and 18.6% operating margin, with $2.2 billion in new TCV bookings and 9.4% software growth.

🔄 What Changed
Revenue growth accelerated to 6.2% YoY in constant currency, software segment grew 9.4% YoY, and new TCV bookings reached $2.2 billion, while ROW growth turned negative (-2.6%).

🔮 What's Next
FY'25 revenue growth guidance revised to 3.5%-5% in constant currency; EBIT margin guidance unchanged at 18%-19%; wage hike impacts of 65-80 bps in Q3 and 50-60 bps in Q4.

💡 Investor Takeaway
HCL is gaining momentum in software and AI with strong new deals and bookings, but faces headwinds in ROW and certain verticals, making near-term margin expansion dependent on execution and macro conditions.

HCL Technologies reported Q2 FY'25 revenue growth of 6.2% in constant currency and an 18.6% operating margin, driven by strong software growth (9.4% YoY) and $2.2 billion in new TCV bookings, while expanding AI integrations with Microsoft GitHub Copilot and cloud partners. Management highlighted diversification into software and AI, with acquisitions like Zeenea, though ROW growth turned negative (-2.6%) and automotive/aerospace faced client cost pressures. The company raised FY'25 revenue guidance to 3.5%-5% in constant currency, with EBIT margin guidance unchanged at 18%-19%, and expects second-half performance to outperform the first half, factoring in 65-80 bps wage hike impacts in Q3 and 50-60 bps in Q4.

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About HCL Technologies Ltd (HCLTECH)

Information Technology · IT - Software · Listed on BSE

Market Cap: ₹3,61,161.69 Cr P/E: 20.7 ROE: 23.2% ROCE: 31.6% Div Yield: 4.06%

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🔥 Also filed on 30 September 2024

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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