Q2 2025 HCL Technologies Ltd Earnings Call Transcript
Key Points
- HCL Technologies Ltd (BOM:532281) reported a 1.6% sequential revenue growth and a 6.2% year-on-year increase in constant currency, indicating strong business momentum.
- The company's operating margin improved to 18.6%, an increase of 149 basis points from the previous quarter, showcasing effective operational execution.
- HCLSoftware business demonstrated significant growth with a 9.4% increase this quarter and a 6.4% growth in H1 FY25, highlighting the relevance of its products in the digital economy.
- The company secured 20 new deals in Q2, with a total new booking TCV of $2.2 billion, reflecting a healthy mix of small and large deals.
- HCL Technologies Ltd (BOM:532281) continues to witness strong traction in AI and GenAI-related opportunities, with its AI Force platform being widely adopted for service transformation.
- The financial services vertical experienced a decline due to the planned divestment, impacting overall growth in this sector.
- Despite overall growth, the Rest of the World (ROW) region saw a year-on-year decline of 2.6% in constant currency.
- The automotive sector, particularly in Europe, is facing pressure, which could impact future growth in this segment.
- The company's guidance for the second half of FY25 indicates a cautious outlook, with expected growth between 3.5% to 5% year-on-year in constant currency.
- There is a noted volatility in the software business, making it challenging to predict consistent long-term growth despite recent strong performance.
Ladies and gentlemen, good day and welcome to the HCLTech's Q2 FY25 earnings conference call. (Operator Instructions) Please note that 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, Darwin. Good morning and good evening everyone. A very warm welcome to HCLTech's quarter two FY25 earnings call. We have with us, Mr. C. Vijayakumar, CEO and Managing Director, HCLTech; Mr. Shiv Walia, 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
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