Q1 2025 HCL Technologies Ltd Earnings Call Transcript
Key Points
- HCL Technologies Ltd (BOM:532281) reported a year-on-year revenue growth of 5.6% in constant currency, despite a sequential decline of 1.6%.
- The company's IT and business services grew 5.3% year-on-year, and engineering and R&D services grew 8.4% year-on-year.
- HCL Software business showed positive growth, with a 3.5% year-on-year increase and a 0.4% sequential increase in constant currency.
- The company reported a total contract value (TCV) of $1.96 billion for the quarter, indicating strong deal wins.
- HCL Technologies Ltd (BOM:532281) continues to see significant opportunities and growth in the AI and GenAI space, with multiple ongoing engagements and new product launches.
- Operating margins decreased to 17.1%, a decline of 50 basis points compared to the previous quarter.
- The services business experienced a sequential decline of 1.9%, and the engineering and R&D services saw a sequential decline of 3.5%.
- The life sciences and healthcare segment declined 4.1% year-on-year due to project completions and softness in the MedTech segment.
- The overall people count reduced by 3.6% sequentially, attributed to the State Street JV divestiture.
- The manufacturing vertical faced significant weakness, particularly in the automotive segment, contributing to a decline in engineering services.
Ladies and gentlemen, good day, and welcome to the HCL Technologies Limited Q1 FY25. (Operator Instructions) Yes, this conference is being recorded. I now hand the conference over to Mr. Nitin Mohta, Head, Investor Relations. Thank you, and over to you, sir.
Thank you, Darby, and good morning and good evening, everyone. A very warm welcome to the Q1 FY25 earnings call. We have with us Mr. C. Vijayakumar, 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 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 information presently available to the Management and the Company does not
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