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

Oct 20, 2010, 08:22 ET from HCL Technologies

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

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

- Americas Business Grew By 26.0% 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. During July-September 2010, HCL's revenues increased by 9.0% sequentially and 27.6% YoY to $804mn.

HCL's Americas business posted a growth of 26.0% YoY. The quarter saw HCL inking many transformational deals across Americas in both mature and emerging verticals. These engagements leverage the company's end-to-end IT outsourcing solutions portfolio and will help the customers in business process and IT operations transformation. The company continued to see a positive momentum for all its service lines across Americas.

Commenting on the quarterly results for the Americas, Dr. Shami Khorana, president, HCL Americas, said, "The trend of both discretionary and non-discretionary IT Services buying continued this quarter. Our single-minded focus on value and business aligned IT solutions has ensured that our service portfolio meets the changing needs of our clients' organizations in the current economic environment."

    Americas constitutes 58% of the overall revenues for HCL Technologies.
    The key Americas highlights for this quarter include;

    - HCL won several contracts across Americas this quarter, including a
    multi-million, multi-year Infrastructure services contract by a leading
    consumer goods MNC in Latin America and a major Pharmaceutical company in
    North America. It also won a strategic contract from a leading insurance
    provider in Canada and another for implementing SAP CRM, BI and Business
    Objects by a leading distributor of fuel and lubricants.

    - HCL has undertaken a CRM strategy assessment for a top 3
    Pharma company to define landscape for contact centers for processes,
    technology and people, develop a business case and help implement the
    roll out.

    - HCL partnered with Health Language Inc.(HLI), the global
    leader in medical terminology management, to help healthcare entities
    lower the cost and simplify the ICD-10 conversion across the
    provider-payer continuum by leveraging HLI's Language Engine(R) as part
    of the company's end-to-end ICD-10 conversion solution.

    - HCL tied up a strategic partnership with Daon, a leading
    provider of biometric identity assurance software, to help aviation,
    transportation, government and public sector clients solve their identity
    program challenges through innovative biometric technology solutions.

    - HCL's CapitalStream(TM) "Straight Through Processing" (STP)
    solution went live for the Boston Private Bank & Trust Company. The
    CapitalStream solution was selected by the Boston Private Bank for its
    proven track record of success along with the ability to automate and
    integrate into existing systems and functions throughout the lending
    process, providing faster and easier access to information.

    - HCL announced that Central Bancshares (Central), a financial services
    holding company with roughly $2B in assets, is realizing significant
    operational benefits and improved processing efficiency by 23% in a
    little more than one year after implementing the CapitalStream(TM)
    straight through processing (STP) solution.

    - At the Gartner Outsourcing & Vendor Management Summit 2010,
    two of HCL's Customers namely, Pearson and Oncor Electric Delivery
    Company, showcased the benefits derived as result of their successful
    engagement with HCL.

    - Gartner published a case study titled 'Genzyme Diagnostics
    Leverages Oracle and HCL Technologies to Eliminate Demand Latency',
    Sept 2010 by Michael Dominy.

    - HCL was named a leader in the August 2010 report 'Forrester
    Wave(TM): North American Applications Outsourcing', Q3 2010. HCL was
    among a select group of 12 vendors that Forrester evaluated based on
    current offerings, strategy and market presence. According to this
    report, "HCL is another company that is growing more rapidly than its
    direct competitors."

    - HCL was named a leader in IDC's MarketScape Global Discrete &
    Embedded Product Engineering Testing Services Vendor Assessment Report of
    September 2010. HCL was among a group of 13 vendors that IDC evaluated
    based on current offerings, strategy and market presence. HCL was also
    named a 'major player' in the Enterprise Application Testing Services
    vendor assessment.

    - HCL became a member of Texas Instruments (TI) Elite Design House
    program, a premier group of independent, well-established companies that
    offer system-level design services. HCL will leverage this partnership in
    building product components and solution accelerators for three major
    segments - Aerospace, Medical Electronics and Consumer Electronics, with
    a specific focus on medical imaging, wireless communication and analog
    system applications.

    - HCL launched AeroPASS(TM), a future-proofed, flexible and secure
    biometric Airport Security Solution for expediting the passage of pilots
    and flight attendants through security checkpoints and into sterile
    airport areas.

    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

    Q1 FY 2011Financial Highlights for Americas

    - Americas posts 26.0% YoY revenue growth

    - Americas posts 2.8% QoQ revenue growth for quarter ending September

    - This geography constitutes 58.0% of HCLT's 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 http://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
    Kirsten Paragona
    Phone: +1-857-350-5393
    Email: kparagona@hcl.in

    BluePoint Marketing for HCL Technologies
    Tim Hurley or Jill Newberry
    Phone: +1-781-861-7800
    E-mail: thurley@bluepointmktg.com or

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