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HCL confident of ‘decent growth’ ahead; Q1 revenue up 5.6%

HCL confident of ‘decent growth’ ahead; Q1 revenue up 5.6%

July 12, 2024

Main article

IT services giant HCL Technologies reported revenue rose 5.6% in constant currency (as measured in US dollars) to $3.36 billion in its fiscal first quarter ended June 30. Gross margin narrowed, but net income rose. The Noida, India-based firm also reported an increase in services revenue in the Americas — its largest geography in terms of revenue.

“Our Q1 revenue and EBIT performance was slightly better than our expectations,” CEO C. Vijayakumar said in a press release. “We clocked in $2B [total contract value] of new business bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies.”

HCL’s earnings announcement by the numbers reported:

  • Total workers declined by 8,080 from the fourth quarter of 2024 to a total of 219,401.
  • First-quarter net income rose 15.3% year over year to $496 million from $430 million.
  • Services revenue in the Americas rose 8.0% year over year in constant currency in the first quarter. Americas represented 66.0% of revenue. Europe revenue rose 3.0%, while rest-of-world revenue fell by 3.6%. Services revenue represents 90.4% of HCL’s total revenue.

HCL forecast full-year revenue to be up between 3.0% and 5.0% in constant currency.

HCL Technologies - Q1 2025

(US$ millions)

Q1 2025

Q1 2024

% change

% change constant currency

Revenue

3,363.8

3,200.0

5.1%

5.6%

Gross profit

1,162.1

1,139.0

2.0%

-

Gross margin

34.5%

35.6%

-

-

Net income

495.8

430.0

15.3

-

Share price

Shares in HCL closed up 3.19% today in India to 1,560.20 rupees (US$18.68). Shares were 8.08% below their 52-week high.