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Technology Services

HCL Technologies Ltd.

  • 1,018.00 INR
  • -44.90
  • -4.22%
  • India
    Apr 20, 2018
  • Ticker
    BOM(532281)
  • Prev. close
    1,062.90
  • Market cap (INR)
    1,479.81B
  • Market cap (USD)
    22,409.18M
  • Shares
    1,392.24M

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. is a global information technology services company. It operates through the following segments: Software Services; Business Process Outsourcing Services; and Information Technology Services. The Software Services segment provides application development and maintenance, enterprise application, next generation software as a service application services, engineering, and research and development. The Business Process Outsourcing Services segment offers traditional contact centre and help desk services and the next generation services around platform business process as a service. The Information Technology Services segment relates to management services involving customer's information technology assets. The company was founded by Shiv Nadar on November 12, 1991 and is headquartered in Noida, India.

Financial Highlights

Mar 2017 INRUSD
Revenue475,675.30M7,093.58M
Gross Profit135,531.50M2,021.13M
Operating income96,047.40M1,432.32M
Income before tax105,398.50M1,571.77M
Net income86,063.30M1,283.43M
EBITDA104,328.70M1,555.81M
Diluted EPS60.270.89
Dividends Per Share240.35
Total Assets460,794.10M7,096.23M
Total liabilities129,570.30M1,995.38M
Total equity329,498.50M5,074.28M
Operating cash flow98,305.40M1,465.99M
Currency in INRCurrency in USD

Historical Data

 Jun 2012Jun 2013Jun 2014Mar 2016Mar 2017
Revenue 208,305.50M 255,810.60M 321,436.60M 415,144.82M 475,675.30M
Gross Profit 57,937.90M 81,319.50M 107,268.20M 123,159.29M 135,531.50M
Operating income 31,809.60M 50,436.80M 73,984.90M 83,439.12M 96,047.40M
Income before tax 32,098M 52,698.90M 79,173.30M 93,237.80M 105,398.50M
Net income 24,227M 40,400.90M 65,095.10M 74,142.25M 86,063.30M
EBITDA 37,302M 56,804.40M 80,793.50M 88,903.91M 104,328.70M
Diluted EPS 17.21 28.60 45.96 52.53 60.27
Dividends Per Share 5 6 5 22 24
Total Assets 201,071.50M 251,633.40M 340,559.30M 394,165.60M 460,794.10M
Total liabilities 102,682.20M 119,546.70M 144,487.70M 118,151.30M 129,570.30M
Total equity 98,350.90M 131,589.80M 195,421.80M 273,907.70M 329,498.50M
Operating cash flow 26,373.20M 46,161.60M 69,032.50M 44,600.40M 98,305.40M
 Jun 2012Jun 2013Jun 2014Mar 2016Mar 2017
Revenue 4,147.09M 4,663.55M 5,231.68M 6,340.91M 7,093.58M
Gross Profit 1,153.46M 1,482.49M 1,745.89M 1,881.13M 2,021.13M
Operating income 633.28M 919.48M 1,204.17M 1,274.44M 1,432.32M
Income before tax 639.02M 960.72M 1,288.62M 1,424.11M 1,571.77M
Net income 482.32M 736.52M 1,059.48M 1,132.44M 1,283.43M
EBITDA 742.63M 1,035.57M 1,314.99M 1,357.91M 1,555.81M
Diluted EPS 0.34 0.52 0.74 0.80 0.89
Dividends Per Share 0.09 0.10 0.08 0.33 0.35
Total Assets 3,601.17M 4,234.47M 5,662.30M 5,952.13M 7,096.23M
Total liabilities 1,839.02M 2,011.72M 2,402.32M 1,784.15M 1,995.38M
Total equity 1,761.45M 2,214.38M 3,249.17M 4,136.17M 5,074.28M
Operating cash flow 525.05M 841.54M 1,123.56M 681.22M 1,465.99M

Valuation Measures

Mar 2017
PER14.47
ROA20.13%
ROE28.52%
Operating margin20.19%
Profit margin18.09%

Key executives

  • Chairman, MD & Chief Strategy Officer: Shiv Nadar
  • President & Chief Executive Officer: C. Vijayakumar
  • Chief Financial Officer: Anil Kumar Chanana
  • CTO & EVP-Information Technology Services: Kalyan Kumar B.
  • Chief Technologist & Vice President: Vikram Duvvoori

Shareholders

  • Vama Sundari Investments (Delhi) Pvt Ltd. (42.2%)
  • NADAR SHIV (16.7%)
  • Life Insurance Corp. of India (1.5%)
  • ICICI Prudential Asset Management Co. Ltd. (1.5%)
  • Artisan Partners LP (1.4%)
  • BlackRock Fund Advisors (1.4%)
  • The Vanguard Group, Inc. (1.2%)
  • ICICI Prudential Life Insurance Co. Ltd. (Invt Port) (1.2%)
  • Lazard Asset Management LLC (1.1%)
  • SBI Funds Management Pvt Ltd. (1.0%)

Contact Details

Related Companies

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  • HCL Technologies (Taiwan) Ltd.
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  • Axon Solutions Pty Ltd. (Australia)
  • Hcl Training & Staffing Services Pvt Ltd.
  • Concept2Silicon Systems Pvt Ltd.
  • Volvo Information Technology AB /IT Business/
  • Trygstad Technical Services, Inc. /Assets/
  • HCL Technologies BPO Services Ltd.
  • Trygstad Technical Services, Inc.
  • PowerTeam, Inc.
  • HCL Australia Services Pty Ltd.
  • HCL Infocom Ltd.
  • HCL Bermuda Ltd.
  • Point to Point Ltd.
  • HCL America, Inc.
  • HCL Axon (Pty) Ltd.
  • HCL EAS Ltd.
  • Liberata Financial Services Ltd.
  • HCL Technologies (Mass), Inc.
  • HCL Technologies BPO Service (NI) Ltd.
  • DSI Financial Solutions Pte Ltd.
  • HCL Enterprise Solutions, Inc.
  • Shipara Technologies Ltd.
  • HCL Technologies Banking & Financial Services

Competitors

  • Virtusa Corporation
  • Cognizant Technology Solutions Corporation Class A
  • EPAM Systems, Inc.
  • NetSol Technologies, Inc.
  • NNIT A/S
  • Globant SA
  • Innodata Inc.
  • Cigniti Technologies Limited
  • Akka Technologies SA
  • Altran Technologies SA
  • Semcon AB
  • Firstsource Solutions Limited
  • Hinduja Global Solutions Limited
  • Automatic Data Processing, Inc.
  • Information Services Group, Inc.
  • Verisk Analytics Inc
Last Updated on 20 Apr, 2018

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