HCLTech to lead Indian IT giants in FY24
BENGALURU, INDIA — IT services and consulting company HCL Technologies is on track to be the fastest-growing of India’s top four IT services providers after revealing a successful December quarter.
In its latest financial report, HCLTech revealed a 5.9% sequential growth in revenue from the July to September quarter to $3.42 billion and a 12.5% increase in net profit to $522 million. Its operating margin also improved by 1.3 percentage points to 19.8%.
According to business and financial newspaper Mint, HCLTech is expected to have the highest growth among the top 4 this financial year, maintaining its margin guidance of 5% to 5.5%.
Tata Consultancy Services (TCS) is expected to follow HCLTech, having grown its revenue at 4% year-on-year until the December quarter. Infosys, which has so far grown at 2.5%, would be third.
Mint named Wipro as the only one of the top 4 that is expected to report a revenue decline after posting a 1.7% sequential drop to $2.67 billion due to losses in key businesses. It also projected its fourth-quarter revenue to change between -1.5% and 0.5%.
HCLTech Chief Executive and Managing Director C Vijayakumar said that the firm is poised for stronger 2024 growth than peers due to its manufacturing and engineering focus, which can mitigate uncertainties in software spending.
The firm also recently signed a $2.1-billion deal with American telecommunications company Verizon in August and a software collaboration agreement with Amazon Web Services, which strengthened its business significantly.
Aside from a revenue increase, HCLTech is also the only Indian IT giant that plans to hire more workers this financial year. Vijayakumar said that they are looking to recruit 15,000 more college graduates on top of the 27,000 people added in the previous quarters.
Vijayakumar added that it will continue its hiring momentum through the entire calendar year to maintain its revenue growth guidance for FY2024.
