‘Joining the $10 bn revenue club was a great milestone’
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3 min read We are constantly looking for new locations to grow. Even in India if you look in the last four years, we have created four new locations in Madurai, Lucknow, Nagpur and Vijaywada - what we call New Vistas and these have grown significantly.
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NEW DELHI :
HCL Technologies Ltd reported robust December quarter earnings on the back of 13 major deals and a covid-induced demand for digital services. India’s third-largest software services company by revenue posted a net profit of ₹3,982 crore in the three months ended 31 December, up 26.7% from the previous quarter, and 31.1% from the year earlier. It also crossed the key milestone of $10 billion in annual revenue in 2020. In an interview, C. Vijayakumar, president and chief executive, HCL Tech, spoke about the strategic investments the company has made over the years and future plans. Edited excerpts:
While the IT services provider reported steady growth across business segments, president and chief executive C Vijayakumar told that its investment in products is beginning to pay off.
HCL Tech to hire 20,000 people in next two quarters: CEO C Vijayakumar
About 15% of these would be for onshore locations or client geographies with the remaining will be offshore, said HCL chief executive C VijayakumarPTI | Jan 16, 2021, 02:52PM IST
IT services major HCL Technologies is looking at hiring about 20,000 people over the next two quarters to meet the demand coming in on the back of strong growth in deal signing and adoption of digital services. The Noida-based company, which crossed $10 billion milestone in the calendar year 2020, had 1,59,682 employees at the end of December 31, 2020. It saw a gross addition of 12,422 people, while net addition during the December 2020 quarter was of 6,597 people. Attrition for IT services (on last 12 month basis) was at 10.2%.
Prateek Aggarwal, CFO, HCL Tech discuss Q3 results with Chandra Srikanth of ET NOW.
How would you describe your Q3 results?
C Vijayakumar: We crossed the $10-billion revenue milestone. It is a momentous milestone in our journey and I want to thank all our employees, partners and all our clients for the tremendous confidence and trust that they have had in us. It is a great occasion and we are very happy because on a 12-month basis, in CY20 we crossed $10 billion turnover.
2021 has started on a very good note. Our revenues on a constant currency basis are 3.5% up and 4.4% up in US dollar terms. Our EBIT came in at 22.9%, it is again 130 bps higher than the previous quarter. What is most significant about this quarter was that our Mode 2 and Mode 3 businesses are firing on all cylinders. Our Mode 2 business growth was 10.9% quarter on quarter and 25% year on year. This is largely led by digital transformation programmes, cloud migration, security, IOT all the new things where we t