SOURCE: HCL Technologies Ltd

January 19, 2011 08:15 ET

HCL Technologies Posts Strong Revenue Growth in 2nd Quarter of FY 2010-11

Revenues at US$ 864 mn; Up 7.5% QoQ & 32.6% YoY

European Business Grew by 19.9%YoY in October-December 2010

LONDON and NOIDA, INDIA--(Marketwire - January 19, 2011) -  HCL Technologies Ltd. (HCL), a leading global IT services provider, today announced results for the 2nd quarter of FY 2010-11. HCL's global revenues increased by 7.5% sequentially and 32.6%YoY to US$864mn.

HCL accelerated its growth in the European region reporting a revenue increase of 7.2% QoQ and 19.9% YoY during the 2nd quarter of FY 2010-11. In Calendar Year 2010, HCL recorded revenues in excess of US$ 3bn of which US$ 809 mn came from Europe.

"This geography constitutes 26.6% 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. With the signing of these new contracts across Europe last quarter and the partnership of new alliances, it also shows our growing operations and commitment to the region.

The key European highlights from this quarter include;

  • HCL has been presented with the 'Service Provider of the Year' award by the National Outsourcing Association, UK.

  • HCL has been positioned as a 'Leader' in the 'Forrester Wave™: EMEA Applications Outsourcing, Q4 2010' that evaluated leading Application outsourcing solution vendors

  • HCL has entered into an engagement to provide end-to-end Fulfillment services for Cards and Online Savings to Bank of Ireland.

  • HCL signed an Infrastructure Services engagement with leading in-vitro diagnostics company bioMérieux SA.

  • HCL signed a strategic Infrastructure Management partnership with Swisscom ITS for managing its IT infrastructure. As part of this agreement, Swisscom ITS will also be the Go-to-Market channel for HCL in Switzerland.

  • Leading journalists from more than 20 European media houses visited the HCL India campus to understand HCL and its strategy. As a follow on to this visit, HCL was covered extensively in leading European publications like The Financial Times, The BBC, The Daily Telegraph, Les Echos and La Tribune

Q2 FY 2011 Financial Highlights for HCL Technologies

  • Q2 Revenues at US$ 864 mn; up 7.5% QoQ & 32.6% YoY
  • Net Income at US$ 89 mn; up 23.7% QoQ & 39.2% YoY
  • Gross & Net Employee addition of 8,379 & 2,049 respectively taking total headcount to 72,267 

Q2 FY 2011 Financial Highlights for Europe:

  • Europe posts 19.9% YoY revenue growth in FY'10 over FY'09
  • Europe posts 7.2% QoQ revenue growth

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 72,267 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 3.1 billion (Rs. 14,101 crores), as on 31st December 2010 (on LTM basis). For more information, please visit www.hcltech.com

About HCL

HCL is a $5.5 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 77,000 professionals of diverse nationalities, who operate from 29 countries including over 500 points of presence in India. HCL has partnerships with several leading Global 1000 firms, including leading IT and technology firms. For more information, please visit www.hcl.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.