Half Year 2024 HCL Technologies Ltd Earnings Call Transcript
Key Points
- HCL Technologies Ltd (BOM:532281) recorded its highest bookings ever at $4 billion, setting a strong foundation for future growth.
- Revenue grew 1% quarter-on-quarter and 3.4% year-on-year in constant currency, indicating steady growth.
- Operating margins improved by 154 basis points over the last quarter, reaching 18.5%, driven by efficiency initiatives and cost optimizations.
- The company added significant new clients, including 3 accounts in the $100 million category and 7 accounts in the $50 million category.
- HCL Technologies Ltd (BOM:532281) expects strong growth in Q3 and Q4, supported by large deal ramp-ups and seasonal software business spikes.
- Discretionary spending remains lower than usual, impacting overall revenue growth.
- The technology vertical continues to be weak, with hopes for recovery in the coming quarters.
- Despite strong bookings, the overall environment remains volatile, making long-term planning challenging.
- The company had to revise its full-year growth guidance downwards due to a weak Q1 and lower-than-expected Q2 performance.
- There are concerns about the impact of wage hikes on margins, with an expected hit of 60 to 65 basis points in the upcoming quarters.
Ladies and gentlemen, good day, and welcome to the HCL Technologies Limited Q2 FY '24 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Mendiratta, Head Investor Relations. Thank you, and over to you, sir.
Thank you, Yash. Good morning, and good evening, everyone. A very warm welcome to HCLTech's Quarter 2 Fiscal '24 Earnings Call. We have with us Mr. C. Vijay Kumar, CEO and Managing Director, HCLTech; Mr. Prateek Aggarwal, Chief Financial Officer; along with the broader leadership team to discuss the performance of the company during the quarter, followed by the Q&A.
In the course of this call, certain statements that will be made are forward looking, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All forward-looking statements made herein are based on
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