In This Article:
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Consolidated Revenue: $13.84 billion, a 4.7% increase in constant currency for FY25.
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Operating Margin: 18.3%, a 7 basis points increase over FY24.
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Services Business Growth: 4.8% in FY25.
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IT and Business Services Growth: 4.6% increase.
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Engineering and R&D Services Growth: 5.5% increase.
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HCL Software Growth: 3.5% increase, with ARR at $1.03 billion.
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Q4 Revenue: Declined 0.8% sequentially, grew 2.9% year on year.
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Q4 Operating Margin: 17.9%.
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Geographic Growth: Americas grew 5.3%, ROW 4.7%, Europe 3.5% year on year.
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Telecom, Media, and Publishing Growth: 43.4% in FY25.
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Retail CPG Growth: 10.7% increase.
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Technology and Services Growth: 6.7% increase.
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Net New Booking: $3 billion for the quarter, $9.4 billion TCV for FY25.
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Employee Count: 223,420 as of March 31, 2025.
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Voluntary Attrition: 13% on an LTM basis.
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Net Income for Q4: $496 million at 14.2% of revenue.
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Net Income for FY25: $2.041 billion at 14.7% of revenue.
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Return on Invested Capital (ROIC): 37.9%, up 411 basis points year on year.
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Operating Cash Flow: $2.63 billion for the year.
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Free Cash Flow: $2.5 billion for the year.
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Gross Cash: $3.662 billion.
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Net Cash: $3.35 billion.
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EPS: INR64.09, up 10.8% year on year.
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Dividend: INR18 per share for the quarter, totaling INR60 per share for the year.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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HCL Technologies Ltd (BOM:532281) reported a consolidated revenue of $13.84 billion for FY25, marking a 4.7% increase in constant currency.
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The company's services business outpaced similar-sized peers for the third consecutive year, achieving a growth of 4.8%.
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HCL Technologies Ltd (BOM:532281) secured $3 billion in net new bookings for the quarter, the second highest after the September 2023 quarter.
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The company's engineering and R&D services business experienced a record high booking, with a 75% growth in FY25.
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HCL Technologies Ltd (BOM:532281) has made significant strides in AI, with its AI Force platform gaining traction and impacting both clients and internal operations.
Negative Points
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The company's Q4 revenues declined 0.8% sequentially due to seasonality in the software business.
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HCL Technologies Ltd (BOM:532281) experienced a decline in its North American business, attributed to the completion of a large program in the retail CPG segment.
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The company anticipates subdued discretionary spending and potential budget cuts due to geopolitical factors like tariffs and deglobalization.
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HCL Technologies Ltd (BOM:532281) reported a 1.8% reduction in its employee base, despite a 4.7% revenue growth, due to AI-led automation efforts.
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The company's guidance for FY26 reflects cautious optimism, with revenue growth expected to be between 3% to 5% in constant currency, indicating potential challenges ahead.