HCL Technologies Ltd.
Company Background
HCL Technologies is a major provider of IT services in India. It is logging rapid earnings growth while trying to catch up with the top three in the domestic sector. It has offices in more than 30 countries and over 100,000 workers on its payroll.
HCL group was established in 1976 in a garage where founder Shiv Nadar, who is now chairman, worked with friends. In 1978, it became the first in India to develop microcomputers. The group dealt mainly in hardware in the 1980s and 1990s but founded HCL Technologies in 1991, latching onto the growth of the nation's IT services industry.
The company's policy is to delegate considerable power to workers, who get active support from managers. It has institutionalized a system that gives lower-ranking employees the opportunity to contribute ideas; the company credits this with fueling growth.
HCL Technologies' leading shareholder is an investment firm, of which Shiv Nadar is an executive. The investment company and the group's holding company together own nearly 60% of HCL Technologies.
The holding company also presides over HCL Infosystems, a listed business that sells hardware.
Business Summary
Financial Highlights
| Mar 2023 | INR | USD |
| Revenue | 1,014.56B | 12,624.23M |
| Gross Profit | 250,760M | 3,120.22M |
| Operating income | 184,830M | 2,299.85M |
| Income before tax | 194,880M | 2,424.90M |
| Net income | 148,510M | 1,847.91M |
| EBITDA | 226,280M | 2,815.61M |
| Diluted EPS | 42.27 | 0.52 |
| Dividends Per Share | 48 | 0.59 |
| Total Assets | 934,110M | 11,366.28M |
| Total liabilities | 280,130M | 3,408.63M |
| Total equity | 654,050M | 7,958.50M |
| Operating cash flow | 185,650M | 2,310.05M |
| Currency in INR | Currency in USD |
Historical Data
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Revenue | 604,270M | 706,760M | 753,790M | 856,510M | 1,014.56B |
| Gross Profit | 161,770M | 181,610M | 185,200M | 198,370M | 250,760M |
| Operating income | 119,980M | 141,290M | 156,340M | 164,230M | 184,830M |
| Income before tax | 126,220M | 140,200M | 158,530M | 169,380M | 194,880M |
| Net income | 101,200M | 110,570M | 111,450M | 134,990M | 148,510M |
| EBITDA | 140,710M | 175,490M | 202,450M | 207,490M | 226,280M |
| Diluted EPS | 36.77 | 40.74 | 41.06 | 49.76 | 42.27 |
| Dividends Per Share | 4 | 6 | 16 | 44 | 48 |
| Total Assets | 585,750M | 829,060M | 861,940M | 890,330M | 934,110M |
| Total liabilities | 171,060M | 314,850M | 261,120M | 270,270M | 280,130M |
| Total equity | 413,660M | 512,670M | 599,130M | 619,140M | 654,050M |
| Operating cash flow | 92,110M | 133,670M | 200,640M | 173,200M | 185,650M |
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Revenue | 8,639.50M | 9,967.56M | 10,154.10M | 11,495.29M | 12,624.23M |
| Gross Profit | 2,312.89M | 2,561.27M | 2,494.77M | 2,662.34M | 3,120.22M |
| Operating income | 1,715.40M | 1,992.63M | 2,106.01M | 2,204.14M | 2,299.85M |
| Income before tax | 1,804.62M | 1,977.26M | 2,135.51M | 2,273.26M | 2,424.90M |
| Net income | 1,446.89M | 1,559.38M | 1,501.31M | 1,811.71M | 1,847.91M |
| EBITDA | 2,011.78M | 2,474.96M | 2,727.14M | 2,784.74M | 2,815.61M |
| Diluted EPS | 0.52 | 0.57 | 0.55 | 0.66 | 0.52 |
| Dividends Per Share | 0.05 | 0.08 | 0.21 | 0.59 | 0.59 |
| Total Assets | 8,455.43M | 10,958.97M | 11,789.02M | 11,749.65M | 11,366.28M |
| Total liabilities | 2,469.28M | 4,161.86M | 3,571.42M | 3,566.74M | 3,408.63M |
| Total equity | 5,971.27M | 6,776.75M | 8,194.49M | 8,170.76M | 7,958.50M |
| Operating cash flow | 1,316.93M | 1,885.17M | 2,702.76M | 2,324.53M | 2,310.05M |
Valuation Measures
| Mar 2023 | |
| PER | 25.66 |
| ROA | 16.28% |
| ROE | 23.32% |
| Operating margin | 18.21% |
| Profit margin | 14.63% |
Key executives
- President, Chief Executive Officer & MD: C. Vijayakumar
- Chief Financial Officer: Prateek Solek Aggarwal
- President-Engineering, R&D Services: Hanumantha Rao Gade
- Chief Technology Officer & Corporate VP: Kalyan Kumar B.
- VP-ERS, Manufacturing, Medical & Transportation: Hari Sadarahalli
Shareholders
- Vama Sundari Investments (Delhi) Pvt Ltd. (43.9%)
- NADAR SHIV (16.4%)
- Life Insurance Corporation of India (Investment Portfolio) (2.6%)
- Artisan Partners LP (1.8%)
- ICICI Prudential Asset Management Co. Ltd. (1.4%)
- SBI Funds Management Pvt Ltd. (1.3%)
- The Vanguard Group, Inc. (1.2%)
- BlackRock Fund Advisors (1.0%)
- HDFC Asset Management Co. Ltd. (Invt Mgmt) (1.0%)
- Fidelity Management & Research Co. LLC (0.7%)
Contact Details
- Website:http://www.hcltech.com
- Address: Technology Hub, SEZ, Plot No. 3A, Sector 126, Noida, 201304, India
- Phone: +91.12.06125000
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Competitors
- Cognizant Technology Solutions Corporation Class A
- Globant SA
- EPAM Systems, Inc.
- Synopsys, Inc.
- NetSol Technologies, Inc.
- SQLI SA
- Magyar Telekom Telecommunications PLC
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