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: Software Services, Information Technology (IT) Services, and Business Process Outsourcing 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 IT Services segment provides management services involving customer's information technology assets. 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 company was founded by Shiv Nadar on November 12, 1991 and is headquartered in Noida, India.
Financial Highlights
| Mar 2020 | INR | USD |
| Revenue | 706,760M | 9,967.56M |
| Gross Profit | 181,610M | 2,561.27M |
| Operating income | 141,290M | 1,992.63M |
| Income before tax | 140,200M | 1,977.26M |
| Net income | 110,570M | 1,559.38M |
| EBITDA | 175,490M | 2,474.96M |
| Diluted EPS | 40.74 | 0.57 |
| Dividends Per Share | 6 | 0.08 |
| Total Assets | 829,060M | 10,958.97M |
| Total liabilities | 314,850M | 4,161.86M |
| Total equity | 512,670M | 6,776.75M |
| Operating cash flow | 133,670M | 1,885.17M |
| Currency in INR | Currency in USD |
Historical Data
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
| Revenue | 415,144.82M | 475,680M | 505,690M | 604,270M | 706,760M |
| Gross Profit | 123,159.29M | 135,810M | 135,290M | 161,770M | 181,610M |
| Operating income | 83,439.12M | 96,030M | 99,560M | 119,980M | 141,290M |
| Income before tax | 93,237.80M | 105,420M | 110,240M | 126,220M | 140,200M |
| Net income | 74,142.25M | 86,060M | 87,210M | 101,200M | 110,570M |
| EBITDA | 88,903.91M | 104,310M | 113,390M | 140,710M | 175,490M |
| Diluted EPS | 26.26 | 30.13 | 31.09 | 36.77 | 40.74 |
| Dividends Per Share | 11 | 12 | 4 | 4 | 6 |
| Total Assets | 394,165.60M | 457,620M | 480,230M | 585,750M | 829,060M |
| Total liabilities | 118,151.30M | 126,400M | 116,370M | 171,060M | 314,850M |
| Total equity | 273,907.70M | 329,490M | 363,860M | 413,660M | 512,670M |
| Operating cash flow | 44,600.40M | 98,300M | 88,140M | 92,110M | 133,670M |
| Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
| Revenue | 6,340.91M | 7,093.65M | 7,844.28M | 8,639.50M | 9,967.56M |
| Gross Profit | 1,881.13M | 2,025.28M | 2,098.62M | 2,312.89M | 2,561.27M |
| Operating income | 1,274.44M | 1,432.06M | 1,544.37M | 1,715.40M | 1,992.63M |
| Income before tax | 1,424.11M | 1,572.09M | 1,710.04M | 1,804.62M | 1,977.26M |
| Net income | 1,132.44M | 1,283.38M | 1,352.80M | 1,446.89M | 1,559.38M |
| EBITDA | 1,357.91M | 1,555.54M | 1,758.91M | 2,011.78M | 2,474.96M |
| Diluted EPS | 0.40 | 0.44 | 0.48 | 0.52 | 0.57 |
| Dividends Per Share | 0.16 | 0.17 | 0.06 | 0.05 | 0.08 |
| Total Assets | 5,952.13M | 7,047.35M | 7,363.04M | 8,455.43M | 10,958.97M |
| Total liabilities | 1,784.15M | 1,946.56M | 1,784.22M | 2,469.28M | 4,161.86M |
| Total equity | 4,136.17M | 5,074.15M | 5,578.81M | 5,971.27M | 6,776.75M |
| Operating cash flow | 681.22M | 1,465.91M | 1,367.23M | 1,316.93M | 1,885.17M |
Valuation Measures
| Mar 2020 | |
| PER | 10.71 |
| ROA | 15.63% |
| ROE | 23.87% |
| Operating margin | 19.99% |
| Profit margin | 15.64% |
Key executives
- President & Chief Executive Officer: 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 B. Kumar
Shareholders
- Vama Sundari Investments (Delhi) Pvt Ltd. (43.3%)
- NADAR SHIV (16.4%)
- SBI Funds Management Pvt Ltd. (2.1%)
- Artisan Partners LP (1.3%)
- Life Insurance Corp of India (1.2%)
- The Vanguard Group, Inc. (1.2%)
- ICICI Prudential Asset Management Co. Ltd. (1.2%)
- BlackRock Fund Advisors (1.1%)
- Vontobel Asset Management, Inc. (1.0%)
- Nomura Asset Management Singapore Ltd. (0.7%)
Contact Details
- Website:http://bankfab.com
- Address: Technology Hub, SEZ, Plot No. 3A, Sector 126, Noida, 201304, India
- Phone: +91.12.06125000
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Competitors
- International Business Machines Corporation
- Cognizant Technology Solutions Corporation Class A
- DATAGROUP SE
- Globant SA
- EPAM Systems, Inc.
- NetSol Technologies, Inc.
- Synopsys, Inc.
- Cigniti Technologies Limited
- Semcon AB
- Firstsource Solutions Limited
- PFSweb, Inc.
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Last Updated on 26 Feb, 2021
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