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. Is a tech company, which 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 segments. The Information Technolgy and Business Services segments offers technology architecture for businesses. The Engineering and Research and Development Services segment develops digital solutions for different engineering sectors. The Products and Platforms segments offer the HCLSoftware for domain-specific niche sectors. The company was founded by Shiv Nadar on November 12, 1991 and is headquartered in Noida, India.

Financial Highlights

Mar 2023	INR	USD
Revenue	1,014.56B	12,624.23M
Gross Profit	234,320M	2,915.65M
Operating income	187,230M	2,329.71M
Income before tax	194,900M	2,425.15M
Net income	148,510M	1,847.91M
EBITDA	228,680M	2,845.47M
Diluted EPS	54.78	0.68
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	185,660M	2,310.17M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	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	234,320M
Operating income	119,980M	141,290M	156,340M	164,230M	187,230M
Income before tax	126,220M	140,200M	158,530M	169,380M	194,900M
Net income	101,200M	110,570M	111,450M	134,990M	148,510M
EBITDA	140,710M	175,490M	202,450M	207,490M	228,680M
Diluted EPS	36.77	40.74	41.06	49.76	54.78
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	185,660M

	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	2,915.65M
Operating income	1,715.40M	1,992.63M	2,106.01M	2,204.14M	2,329.71M
Income before tax	1,804.62M	1,977.26M	2,135.51M	2,273.26M	2,425.15M
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	2,845.47M
Diluted EPS	0.52	0.57	0.55	0.66	0.68
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	2,310.17M

Valuation Measures

Mar 2023
PER	19.80
ROA	16.28%
ROE	23.32%
Operating margin	18.45%
Profit margin	14.63%

Management

President, Chief Executive Officer & MD: Chinnaswamy Vijayakumar
Chief Operating Officer: Rahul Singh
Chief Financial Officer: Prateek Solek Aggarwal
Chief Technology Officer: Kalyan Kumar B.
President-Engineering & R&D Services: Vijay Anand Guntur

Shareholders

Vama Sundari Investments (Delhi) Pvt Ltd. (44.1%)
NADAR SHIV (16.4%)
Life Insurance Corporation of India (Investment Portfolio) (4.5%)
Artisan Partners LP (2.1%)
The Vanguard Group, Inc. (1.5%)
SBI Funds Management Ltd. (1.4%)
ICICI Prudential Asset Management Co. Ltd. (1.3%)
HDFC Asset Management Co. Ltd. (Invt Mgmt) (1.1%)
BlackRock Fund Advisors (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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Last Updated on 25 Sep, 2023