Technology Services
HCL Technologies Ltd.
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- Asian stocks gain on stronger-than-expected yuan reference rate, China data Aug 8, 2019 See more articles on 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
HCL Technologies Ltd. engages in computer programming, consultancy, and related activities. It operates through the following segments: Information Technology and Business Services(ITBS), Engineering and Research and Development Services(ERS), and Products and Platforms. The ITBS segment provide a comprehensive portfolio of IT and Business Services (Application, Infrastructure, and Digital Process Operations) and Digital Transformation Services enabled by Digital and Analytics, IoTWoRKs, Cloud Native and Cybersecurity Solutions, including products developed within these businesses. The ERS segment provides comprehensive engineering services and solutions across software, embedded, mechanical, VLSI and platform engineering that support the end to end lifecycle of products – both hardware and software across diverse industries, including products developed within this business. The Products and Platforms segment includes standalone product businesses that provide modernized software products to global clients for their technology and industry specific requirements. The company was founded by Shiv Nadar on November 12, 1991 and is headquartered in Noida, India.
Financial Highlights
| Mar 2022 | INR | USD |
| Revenue | 856,510M | 11,495.29M |
| Gross Profit | 212,740M | 2,855.20M |
| Operating income | 162,040M | 2,174.75M |
| Income before tax | 169,520M | 2,275.14M |
| Net income | 134,990M | 1,811.71M |
| EBITDA | 205,300M | 2,755.34M |
| Diluted EPS | 49.77 | 0.66 |
| Dividends Per Share | 44 | 0.59 |
| Total Assets | 890,330M | 11,749.65M |
| Total liabilities | 270,270M | 3,566.74M |
| Total equity | 619,140M | 8,170.76M |
| Operating cash flow | 173,200M | 2,324.53M |
| Currency in INR | Currency in USD |
Historical Data
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | |
| Revenue | 505,690M | 604,270M | 706,760M | 753,790M | 856,510M |
| Gross Profit | 135,290M | 161,770M | 181,610M | 185,200M | 212,740M |
| Operating income | 99,560M | 119,980M | 141,290M | 156,340M | 162,040M |
| Income before tax | 110,240M | 126,220M | 140,200M | 158,530M | 169,520M |
| Net income | 87,210M | 101,200M | 110,570M | 111,450M | 134,990M |
| EBITDA | 113,390M | 140,710M | 175,490M | 202,450M | 205,300M |
| Diluted EPS | 31.09 | 36.77 | 40.74 | 41.06 | 49.77 |
| Dividends Per Share | 4 | 4 | 6 | 16 | 44 |
| Total Assets | 480,230M | 585,750M | 829,060M | 861,940M | 890,330M |
| Total liabilities | 116,370M | 171,060M | 314,850M | 261,120M | 270,270M |
| Total equity | 363,860M | 413,660M | 512,670M | 599,130M | 619,140M |
| Operating cash flow | 88,140M | 92,110M | 133,670M | 200,640M | 173,200M |
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | |
| Revenue | 7,844.28M | 8,639.50M | 9,967.56M | 10,154.10M | 11,495.29M |
| Gross Profit | 2,098.62M | 2,312.89M | 2,561.27M | 2,494.77M | 2,855.20M |
| Operating income | 1,544.37M | 1,715.40M | 1,992.63M | 2,106.01M | 2,174.75M |
| Income before tax | 1,710.04M | 1,804.62M | 1,977.26M | 2,135.51M | 2,275.14M |
| Net income | 1,352.80M | 1,446.89M | 1,559.38M | 1,501.31M | 1,811.71M |
| EBITDA | 1,758.91M | 2,011.78M | 2,474.96M | 2,727.14M | 2,755.34M |
| Diluted EPS | 0.48 | 0.52 | 0.57 | 0.55 | 0.66 |
| Dividends Per Share | 0.06 | 0.05 | 0.08 | 0.21 | 0.59 |
| Total Assets | 7,363.04M | 8,455.43M | 10,958.97M | 11,789.02M | 11,749.65M |
| Total liabilities | 1,784.22M | 2,469.28M | 4,161.86M | 3,571.42M | 3,566.74M |
| Total equity | 5,578.81M | 5,971.27M | 6,776.75M | 8,194.49M | 8,170.76M |
| Operating cash flow | 1,367.23M | 1,316.93M | 1,885.17M | 2,702.76M | 2,324.53M |
Valuation Measures
| Mar 2022 | |
| PER | 23.37 |
| ROA | 15.40% |
| ROE | 22.16% |
| Operating margin | 18.91% |
| Profit margin | 15.76% |
Key executives
- President, Chief Executive Officer & MD: C. Vijayakumar
- Chief Financial Officer: Prateek Solek Aggarwal
- President-Engineering, R&D Services: Hanumantha Rao Gade
- Vice President-Global Information Technology: Ashu Kakkar
- Chief Technology Officer & Corporate VP: Kalyan Kumar B.
Shareholders
- Vama Sundari Investments (Delhi) Pvt Ltd. (43.5%)
- NADAR SHIV (16.4%)
- SBI Funds Management Pvt Ltd. (2.7%)
- Life Insurance Corporation of India (Investment Portfolio) (2.6%)
- ICICI Prudential Asset Management Co. Ltd. (2.1%)
- Artisan Partners LP (1.8%)
- The Vanguard Group, Inc. (1.2%)
- BlackRock Fund Advisors (1.1%)
- Aditya Birla Sun Life Amc Ltd. (Investment Management) (0.7%)
- Nippon Life India Asset Management Ltd. (Invt Mgmt) (0.6%)
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
- DATAGROUP SE
- Cognizant Technology Solutions Corporation Class A
- Globant SA
- Kyndryl Holdings Incorporation
- EPAM Systems, Inc.
- Rackspace Technology, Inc.
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- NetSol Technologies, Inc.
- Grid Dynamics Holdings, Inc. Class A
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