HCL Technologies: Q4FY17 earnings beat analysts' expectations on all parameters

SMC | May 6, 2015, midnight


Country's fourth largest IT services exporter HCL Technologies started off the financial year 2016-17 on a strong note with January - March quarter earnings beating analysts' expectations on all parameters.


Financial Highlights

  • Total revenue grew 30.9% in 12 months period ending Mar’17 as compared to 15.9% for 12 months period ended Mar’16
  • Revenues from Mode 2 andMode 3 offerings together grew 30.9% in12 months period ending Mar’17 . The share of Mode 2 and Mode 3 revenues together stands at 18.6% for FY’17 , compared to 15.9% for 12 months period ended Mar’16
  • Broad based growth across Verticals driven by Public Services at 31.3%, Retail & CPG at 21. 4%, Lifesciences & Healthcare at 11. 1%, Manufacturing at 17. 0%, Telecommunications, Media, Publishing & Entertainment at 5.8%,and Financial Services at 4.9% (on Constant Currency basis)
  • Strong client addition: $5+ Mn clients up by 13, $10+ Mn clients up by 9, $20+ Mn clients up by 10, $40+ Mn clients up by 5, and $50+ Mn clients up by 6.
  • Operating Cash Flow / Net Income conversion at 112%
  • Announces Buyback programme of INR 3,500 Crore
  • Announces dividend of Rs 6 per share, 57th consecutive quarter of dividend payout
  • Return on Equity at 27%


FY’17 Guidance


Revenue:

  • Revenue: FY'18 Revenues are expected to grow between 10.5% to 12.5% in Constant Currency
  • Revenue Guidance is based on FY’17 (April to March) average exchange rates.
  • The above constant currency guidance translates to 9.9% to 11.9% in USD terms based on March 31, 2017 rates.
  • Operating Margin (EBIT): FY’18 expected Operating Margin (EBIT) range is from 19.5% to 20.5%.
  • The Operating Margin guidance assumes USD-INR currency rate of $1=Rs. 65.5 and other currencies at FY’17 average exchange rate


REVENUE GROWTH FOR FY'17 IN CONSTANT CURRENCY

  • Revenue grew by 13.7%.
  • Broad based growth across all revenue segments:
  • Americas and Europe grew by 14.8% and 15.0% respectively
  • Driven by Infrastructure Services at 27 .4%, Engineering and R&D Services at 11.7% and Application Services at 5.9%.
  • Vertical growth led by Public Services at 31.3%, Retail & CPG at 21.4%, Manufacturing at 17 .0%,
  • Lifesciences & Healthcare at 11.1%, Telecommunications, Media, Publishing & Entertainment at 5.8% and Financial Services at 4.9%

 

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