HCL Tech Powers Digital Transformation with AI and Cloud Solutions
HCL Technologies Ltd: Overview
HCL Tech brings together the best of technology and its people to enable global enterprises to accelerate their digital transformation journeys. The Company has a footprint across 60 countries and employs over 227,000+ people. It’s full stack technology services portfolio across the digital, engineering, cloud, AI and software makes it a preferred digital transformation partner to G2000 companies across industries. The Company serves clients through a network of 200+ delivery centers and 150+ innovation labs. It has also established presence in 20 near shore locations to deliver in proximity services to clients. This global reach, combined with a robust ecosystem of partners and hyperscalers, allows it to deploy best-in-class technology solutions at speed and scale. The advent of new technologies like GenAI and continued digital transformation needs of enterprises offer growth opportunities to the Company. Large and mega deals are gaining traction as enterprises focus on cost optimization and vendor consolidation. IT services market is projected at 6.1% globally over the next one year by industry analysts. The current economic landscape indicates favourable market opportunities for technology across industries.
Latest Stock News (16 Jan 2025)
Vodafone Idea (VI), one of India’s leading telecom companies, has partnered with HCL Software, the software business unit of HCLTech, to make its 4G and 5G networks smarter and more efficient. VI is now using HCL Augmented Network Automation (HCL ANA), a multivendor self-optimizing network (MV-SON) platform, to manage its Ericsson and Samsung networks. This advanced technology will help VI improve network performance, save energy, and offer better services to its customers. This partnership with HCL Software is a major step forward for Vodafone Idea. The AI-powered HCL ANA platform will streamline our network operations and provide superior network experience to our customers. It also reflects VI’s commitment to using advanced, Made-in-India technologies to improve services, reduce costs, and prepare for the future of telecom innovation. HCLTech, a leading global technology company, today announced the expansion of its strategic partnership with Microsoft to transform customer service experiences with generative AI and cloud-based contact center solutions. HCLTech will empower clients to activate Microsoft Dynamics 365 Contact Center, a Copilotfirst solution that delivers superior customer experiences, accelerates problem-solving, empowers customer service representatives and drives efficiency.
Business Segments:
- Digital Business Services: HCLTech’s Digital Business Services offerings include Digital Consulting, Commercial Apps, Custom Apps, Data and AI, covering large Application Development, Application Management, Projects and System Integration and value realization work for our clients. HCLTech Digital Business Services help enterprises challenge the status quo by transforming their operating models, by identifying and rethinking the right experiences, enabling them with composable platforms and optimizing them with data-driven insights, all while ensuring sustainable value creation and impact.
- Digital Foundation Services: HCLTech’s Digital Foundation Services (DFS) form the bedrock of our clients’ digital transformation journeys. We offer next-gen AI- and hyper automation-led, secure, resilient and reconfigurable solutions for IT infrastructure. We are a trusted advisor and partner for leading G2000 companies, helping them manage and transform their large and complex IT infrastructure. Clients choose our services for our proven ability to execute at scale and deliver stated business benefits on time.
- Digital Process Operations: Digital Process Operations (DPO) provides clients with next-generation operating models that sustain new levels of speed, agility, efficiency and transformation. DPO revolutionizes customer experiences, modernizes end-to end business value chain, unlocks business capital and drives competitive advantages through its domain expertise, engineering, and AI/GenAI capabilities and best-in-breed partner ecosystem. Our integrated technology-led digital operations model reimagines clients’ operations across three broad digital stacks.
- HCLTech Career Shaper: HCLTech’s EdTech Business Services, now called the HCLTech Career Shaper™, focuses on providing tech platforms, products and solutions for talent mobility at scale with agility. The Career Shaper™ suite of products includes 150+ tech roles-based learning programs, immersive labs and assessments. For enterprises, the solutions encompass hiring tests, skills gap analytics, competency-based learning, proctored assessments
Subsidiary Information:
- HCL Comnet Systems & Services Ltd: HCL Comnet Systems & Services Ltd is a wholly-owned subsidiary of HCL Technologies and operates primarily in the domain of IT infrastructure management services. The company provides end-to-end solutions for remote infrastructure management, network management, and IT support services to global clients. It also plays a pivotal role in supporting HCL Technologies’ global delivery model by managing infrastructure operations across various industries.
- HCL Bermuda Ltd: It is a subsidiary of HCL Technologies, incorporated in Bermuda. It primarily serves as an investment holding entity for HCL’s global operations. The company plays a strategic role in HCL’s international expansion, facilitating business operations and investments in the Americas and other regions.
- HCL Technologies (Shanghai) Ltd: The Company is a China-based subsidiary of HCL Technologies. It focuses on providing IT services, engineering, and R&D solutions to clients in China and the broader Asia-Pacific region. The subsidiary supports industries such as manufacturing, automotive, and electronics, leveraging HCL’s expertise to deliver localized services and solutions tailored to the Chinese market.
- Sankalp Semiconductor Pvt Ltd: Sankalp Semiconductor Pvt Ltd, acquired by HCL Technologies in 2019, is a leading provider of analogue and mixed-signal semiconductor design services. It specializes in delivering end-to-end solutions for complex chip design and verification across sectors like automotive, consumer electronics, healthcare, and IoT. The acquisition has strengthened HCL’s semiconductor capabilities and expanded its offerings in the VLSI (Very Large Scale Integration) design and embedded solutions market.
Q3 FY25 & Business Highlights
- Revenue of ₹29890 crore in Q3 FY25 up by 5.08% YoY from ₹28446 crore in Q3 FY24.
- EBITDA of ₹6860 crore in this quarter at a margin of 23% compared to 24% in Q3 FY24.
- Profit of ₹4594 crore in this quarter compared to a ₹4351 crore profit in Q3 FY24.
- Software revenue at $400 million, an 18.7% increase QoQ but a decline of 2.1% YoY in constant currency. Services revenue at $3,145 million, up 2.2% QoQ and 4.9% YoY in constant currency.
- Added two clients in the $100 million category, four in the $50 million category, and four in the $20 million category YoY. Continued expansion in top five and top 20 clients.
- Won 12 deals in Q3, with total new booking TCV at $2.1 billion. Small deals are growing stronger than large deals, indicating a shift in client spending patterns.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 28446 | 29890 | 101456 | 109913 |
| Expenses | 21659 | 23030 | 78828 | 85713 |
| EBITDA | 6787 | 6860 | 22628 | 24198 |
| OPM | 24% | 23% | 22% | 22% |
| Other Income | 370 | 477 | 1358 | 1495 |
| Net Profit | 4351 | 4594 | 14845 | 15710 |
| NPM | 15.3% | 15.4% | 14.6% | 14.3% |
| EPS | 16.03 | 16.92 | 54.73 | 57.86 |