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Technology Services

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 INRUSD
Revenue856,510M11,495.29M
Gross Profit212,740M2,855.20M
Operating income162,040M2,174.75M
Income before tax169,520M2,275.14M
Net income134,990M1,811.71M
EBITDA205,300M2,755.34M
Diluted EPS49.770.66
Dividends Per Share440.59
Total Assets890,330M11,749.65M
Total liabilities270,270M3,566.74M
Total equity619,140M8,170.76M
Operating cash flow173,200M2,324.53M
Currency in INRCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 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 2018Mar 2019Mar 2020Mar 2021Mar 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
PER23.37
ROA15.40%
ROE22.16%
Operating margin18.91%
Profit margin15.76%

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
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  • Kyndryl Holdings Incorporation
  • EPAM Systems, Inc.
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  • Synopsys, Inc.
  • NetSol Technologies, Inc.
  • Grid Dynamics Holdings, Inc. Class A
  • Cigniti Technologies Limited
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Last Updated on 29 Jun, 2022

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