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

Oct 20, 2010, 06:37 ET from HCL Technologies

LONDON and NOIDA, India, October 20, 2010 /PRNewswire-FirstCall/ --

- Company Revenue at US$804 Million; up 27.6 % YoY & 9.0 % Sequentially

- European Business Grew by 17.5% YoY in July-September 2010

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 2011, HCL's global revenues increased by 9.0% sequentially and 27.6% YoY to $804mn.

HCL accelerated its growth in the European region reporting a revenue increase of 18.2% QoQ and 17.5% YoY during July-September 2010. This quarter HCL added to its customer portfolio in Europe, one of the largest financial institutions in Ireland and a top General Insurance company in the Nordics regions where HCL will be providing business transformation through development, implementation and support & maintenance of their claims management system.

"This geography constitutes 27% of HCL Technologies' revenues and has demonstrated increasing market recognition of the value HCL delivers to its customers." commented Rajeev Sawhney, President for HCL Europe. "Our Go-to-Market strategy encompasses integrated horizontal, vertical and geographic focus and is gaining positive momentum to continue delivering a balanced growth, going forward. "

    The key European highlights from this quarter include;

    - HCL inked several new contracts across Europe this quarter,
      including one of the largest financial institutions in Ireland and
      Pohjola Insurance Ltd, a top General Insurance company in the Nordics
      regions where HCL will be providing business transformation through
      development, implementation and support & maintenance of their claims
      management system.
    - HCL reinforced its relationship with GFI Infortmatique, with
      an order for one of the major aerospace companies in France. HCL has a
      partnership with GFI, who is well positioned to provide on-site in-
      French IT Services for customers in France, allowing HCL to provide
      scalability and standardization.
    - HCL was positioned in the Gartner Magic Quadrant for Desktop
      Outsourcing, Europe and Gartner's Magic Quadrant for Helpdesk
      Outsourcing for Europe. It also received a positive rating MarketScope
      for Managed Security Services in Europe from Gartner.
    - HCL rated 'Positive' in Gartner MarketScope for Managed
      Security Services in Europe.
    - IDC identified HCL as one of the "rising players in the
      Nordic IT services" space. As per IDC, HCL's current position in the
      Nordics is a Challenger position with strong propositions in key
      verticals such as Manufacturing, Consumers Services (Retail & T&M),
      Financial Services, Healthcare and Energy/utilities.

    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 _28.5% YoY & 7.4%

    - Gross & Net Employee addition of 11,785 & 5,661 respectively
      taking total headcount to 70,218

    Q1 FY 2011 Financial Highlights for Europe

    - Europe posts 17.5% YoY revenue growth in Q1 FY'11 over Q1 FY'10
    - Europe posts 18.2% QoQ revenue growth for quarter ending September

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 72,000 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 http://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
    HCL Technologies
    Ranjana Sharma
    HCL Technologies, Europe
    DID: +44(0)207-105-8661
    MOB: +44(0)7921-699137

SOURCE HCL Technologies