HCLTech Q1 revenue up 5.6% YoY to $3.36Bn
NOIDA, INDIA — Global technology company HCL Technologies (HCLTech) recently reported a 5.6% year-over-year (YoY) revenue growth, reaching $3.36 billion for the quarter ending June 30, 2024 (Q1 FY2025).
The firm said its strong financial performance is due to its new deals worth $1.96 billion across various industries and geographies during this period.
Strong growth across business segments
The quarter saw diverse growth across different business segments, with revenue from the services segment increasing by 5.8%, digital by 6%, and engineering and research and development services by 8.4%.
Meanwhile, HCLSoftware continued its strong momentum with a 3.5% YoY growth.
The tech giant’s net income for the quarter stood at ₹4,257 crores ($509 million), marking a 20.4% YoY increase.
The company also maintained its revenue growth guidance of 3-5% (CC) and EBIT margin guidance of 18-19% for FY25.
Leadership perspectives on Q1 performance
C Vijayakumar, CEO & Managing Director of HCLTech, expressed satisfaction with the company’s performance, stating that their Q1 revenue and EBIT performance “was slightly better than our expectations.”
“We clocked in $2B TCV (total contract value) of new business bookings. We are confident of decent growth in the coming quarters, positioning us well to deliver our revenue guidance for the year as clients continue to spend on GenAI and other emerging technologies,” he added.
At the same time, Prateek Aggarwal, Chief Financial Officer of HCLTech, highlighted the company’s financial strength, adding, “Our cashflow generation remains robust with LTM FCF at ₹21,637 crores, 133% of PAT and 88% of EBITDA.”
Geographic and industry-specific growth
The Americas emerged as the fastest-growing geography, with revenue growth of 8% YoY, followed by Europe at 3% YoY.
In terms of industry verticals, growth was led by Telecommunications, Media, Publishing, and Entertainment (69.2% YoY), followed by Retail and Consumer Packaged Goods (9.7% YoY).
Workforce management and technological advancements
The company also reported an attrition rate of 12.8% over the last twelve months, one of the lowest in the industry, and hired 1,078 freshers during Q1 FY25.
HCLTech continues to leverage cutting-edge technologies, including generative artificial intelligence (GenAI) and cloud computing, to help clients future-proof their businesses.
Its strong financial performance in Q1 FY25 underscores its strategic growth and robust operational execution, positioning it well for continued success in the evolving technological landscape.
