HCL Technologies Posts Strong Revenue Growth in 1st Quarter of FY 2011

Oct 20, 2010, 05:26 ET from HCL Technologies

    SINGAPORE and NOIDA, India, October 20, 2010 /PRNewswire-FirstCall/ --
    - Revenue at US$804 Million; up 27.6 % YoY & 9.0 % Sequentially
    - APAC, Middle East, South Asia and ANZ Major Contributors to Growth
    - ROW Business Grew by 58.6% YoY in July-September 2010 Quarter

HCL Technologies Ltd. (HCL), a leading global IT services provider, today announced results for the quarter ended Sept 2010. In this 1st Quarter of FY 2010-11, HCL's global revenues increased by 9.0% sequentially and 27.6% YoY to $804mn.

Rest of the world (ROW), which comprises of APAC, Middle East, South Asia, ANZ and Africa, posted a strong revenue growth of 19.8% QoQ and 58.6% YoY. The quarter saw HCL winning engagements from across the APAC region from Middle East to South East Asia and ANZ. The company's accelerated growth in this region traversed service lines and different verticals therefore ensuring a broad-based momentum.

Commenting on the results, Mr. Virender Aggarwal, Executive Vice President for APAC & MEA, HCL Technologies said "The world economy is going through dynamic change and emerging markets are opening up like never before. HCL is strongly positioned in ROW to capture the growing prospects in this market. Last quarter we won many key deals in this geography owing to our transformational solution offerings. HCL has successfully executed its 'Go-To-Market' strategy that entails delivering end to end IT outsourcing solutions and providing business transformational value to its customers. We are highly committed to spread our footprint in the ROW and will continue to enrich our end-to-end IT offerings for this market".

    The key ROW highlights from this quarter include:

    - South East Asia's (SEA) largest telecommunication company entrusted HCL
      with implementation of their enterprise wide Data Warehousing system.
      This is engagement marks a significant milestone in HCL's focus on the
      telecommunication markets in Emerging geographies.
    - Other strategic deals in this region included a seven year
      Total IT Outsourcing Services agreement with Kingdom of Saudi Arabia
      based Al Majdouie Group, a large IT Infrastructure services deal with
      a Hong Kong based leading airline company for the roll out of
      best-of-breed IT Operations Tools and an IT Infrastructure support
      services contract with Australia's leading provider of general
      insurance and reinsurance services.
    - HCL also inked a deal with New Zealand Department of Corrections to
      develop technology solutions for the country's prison system.
    - The Harvard Business Press book "Employees First, Customers Second -
      Turning Conventional Management Upside Down" authored by HCL
      Technologies' CEO Vineet Nayar, was launched in Japan and talked
      about widely by leading analysts and publications. The book,
      available globally in English since June, is already being translated
      into several languages, including Spanish, Portugese, Complex Chinese
      and Korean.

    Q1 FY 2010 -11 Financial Highlights for HCL Technologies

    - Q1 Revenues at US$ 804 mn; up 9.0% QoQ; up 27.6% YoY
    - Net Income at US$ 72 mn; up 7.9% YoY
    - Revenue on constant currency basis up 28.5% YoY & 7.4%
    - Gross & Net Employee addition of 11,785 & 5,661 respectively
      taking total headcount to 70,218

    Q1FY 2011 Financial Highlights for ROW

    - ROW posts 58.6% revenue growth in Q1 FY'11 over Q1 FY'10
    - ROW posts 19.8% QoQ revenue growth for quarter ending September 2010
    - The region contributes 15.3% to HCLT revenues

About HCL

HCL is a $5 billion leading global Technology and IT Enterprise that comprises two companies listed in India - HCL Technologies & HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups, a pioneer of modern computing, and a global transformational enterprise today. Its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products across a wide range of focused industry verticals. The HCL team comprises over 72000 professionals of diverse nationalities, who operate from 26 countries including over 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information, please visit www.hcl.in

About HCL Technologies

HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on 'transformational outsourcing', underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of 'Employee First' which empowers our 70,218 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.9 billion (Rs. 13,145 crores), as on 30th September 2010 (on LTM basis). For more information, please visit www.hcltech.com

Forward-looking Statements

Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to the statements containing the words 'planned,' 'expects,' 'believes,' 'strategy,' 'opportunity,' 'anticipates,' 'hopes' or other similar words. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding impact of pending regulatory proceedings, fluctuations in earnings, our ability to manage growth, intense competition in IT services, Business Process Outsourcing and consulting services including those factors which may affect our cost advantage, wage increases in India, customer acceptances of our services, products and fee structures, our ability to attract and retain highly skilled professionals, our ability to integrate acquired assets in a cost effective and timely manner, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, the success of our brand development efforts, liability for damages on our service contracts, the success of the companies /entities in which we have made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property, other risks, uncertainties and general economic conditions affecting our industry. There can be no assurance that the forward-looking statements made herein will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the Company, or any other person, that the objective and plans of the Company will be achieved. All forward-looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

    For details contact
    Samrat Banerjee

SOURCE HCL Technologies