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Friday 16 October 2020

HCL steps up QoQ growth

hclHCL Technologies has reported its Q2 results (three months to the end of September) with revenue (constant currency) up 4.5% (to $2.5bn) on Q1 but down -0.4% on the comparable quarter last year.

Hardest hit was Engineering and R&D Services, down 6.8% year on year, in contrast with Products and Platforms, which accelerated 16.2% over Q2 last year. Each of the three business segments improved over last quarter with IT and Business Services faring the best with growth of 4.9% (down 1.6% on Q2 last year). All geographies (Europe grew 2.2% over Q1, but was down 2.6% on last year), segments and verticals returned to positive sequential growth. Meanwhile the EBIT margin hit 21.6% (expansion of 160 bps year-on-year), up from 20.5% in Q1.

CFO, Prateek Aggarwal, said that “engines of growth are firing”, with particular momentum in the Digital Transformation and Cloud businesses and “strong stability” in Products & Platforms. Revenue categorised as “Mode-2” (i.e. deals that enable scaled digital transformation) reached something of a milestone by breaching the $500m mark.

There was progress elsewhere with HCL announcing its intention to acquire DWS Limited. Ecosystem progress also continued with the expansion of its partnership with Amazon Web Services (it joined the ISV Workload Migration Program), its strategic partnership with Google Cloud, and announced collaborations with PTC (augmented reality and IoT) and HPE.

In Q1, HCL said “the worst is behind us”, and certainly Q2 has showed progress.

Posted by: Kate Hanaghan

Tags: results  

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