HCL Technologies posts strong revenue growth

Press release

Published January 23rd, 2011 - 12:52 GMT

HCL Technologies Ltd. (HCL), a leading global IT services provider, today announced results for the 2^nd Quarter of FY 2010-11. HCL’s global revenues increased by 7.5% sequentially and 32.6%YoY to US$864mn.

Rest of the world (ROW), which comprises of APAC, Middle East, South Asia, ANZ and Africa, posted a strong revenue growth of 14.6% QoQ and 60.2% YoY. In CY 2010, HCL recorded revenues in excess of US$ 3 bn, of which US$ 461 mn came from ROW. The region continues to be the fastest growing market for HCL.

Commenting on the results, Mr. Virender Aggarwal, President – Asia, Africa and Middle East, HCL Technologies said “The ROW region delivered strong double digit revenue growth, having achieved exceptional performance across the region. Our emerging market growth strategy is certainly bearing fruit; reflecting sustained investments and the continued strength of infrastructure being built in these countries. Africa, for example, has become a robust region for growth with the recent win with one of the largest telecom operators and a prestigious government project in the sub Saharan market.

Across Asia Pacific, we continue to see strong demand for enterprise services in CRM, ERS, data warehousing and infrastructure services. Working ahead, we are uniquely positioned and continue to invest in emerging technologies like cloud computing and mobile technologies to provide enterprises greater flexibility, innovation and to maximize ROI.”

The key ROW highlights from this quarter include:

HCL has won the SAP Award for Customer Excellence 2010. The prestigious award was given in recognition of HCL’s successful and unique implementation of HRM at Land Transport Authority Singapore.

HCL Japan has been conferred the Japan Management Association (JMA) HRD Excellence Award, 2010

HCL has entered into a contract with a leading Japanese Electronics giant for a three year wing-to-wing Returns Material Management.

HCL has been selected by a leading Japan based automotive company to provide end to end product development for next generation active safety system based on real time vision system based on front and rear mirror imagery

HCL has signed up with one of the largest banks in Africa for providing domain-led services to help the bank in devising its future strategy.

HCL has signed a deal with Novotech, the largest independent clinical research organization in Australia to implement Oracle’s Siebel Clinical Trial Management System (CTMS).

HCL has announced a strategic partnership with Multipolar, a leading Indonesian company, part of the Lippo Group. The partnership entails a joint go-to-market plan for the Indonesian market leveraging HCL’s global capabilities and Multipolar’s local reach

Q2 FY 2011 Financial Highlights for HCL Technologies

Q2 Revenues at US$ 864 mn; up 7.5% QoQ & 32.6% YoY

Net Income at US$ 89 mn; up 23.7% QoQ & 39.2% YoY

Gross & Net Employee addition of 8,379 & 2,049 respectively taking total headcount to 72,267

Q2 FY 2011 Financial Highlights for ROW

ROW posts 60.2% YoY revenue growth this quarter

ROW posts 14.6% QoQ revenue growth

The region continues to be the fastest growing market for HCL

Background Information

HCL

The HCL journey has been relentless, gratifying and marked with a series of achievements. Our unified efforts have catapulted the company from a garage start-up to a conglomerate whose businesses span across three verticals. HCL is humbled by the long journey they have made so far and at the same time, is confident of raging forward and scaling greater heights. Over the years, HCL has conscientiously set high business standards by way of providing sustainable, world-class products, solutions and services; a feat that has helped the organization to touch the lives of millions with possibilities.