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Tuesday 20 July 2021

HCL confident of “handsome growth” in Europe

hclFirst quarter results from HCL Technologies show the firm increased revenue by 11.7% (constant currency) year-on-year to $2.7bn. Q1 EBITDA was 24.5% (US GAAP). For the three months to the end of June 2021, the firm saw a substantial improvement over last year, if only a 0.7% increase on the previous quarter.

The Americas (+13.5%) and the Rest of the World category (+20%) outshone Europe with its growth of 5.1%. However, the firm says "we don’t read too much” into the performance of Europe and claims bookings and pipeline remain “very healthy”. Indeed, President and CEO (and soon to be Managing Director as well), C Vijayakumar (CVK), says he is confident of “handsome growth” in the region in the coming quarters. Life Science & Healthcare was the star vertical, with revenue up 22.1%.

HCL is structured into three segments, with IT and Business Services (c72% of revenue) taking the lead in Q1 with revenue growth of 13%. Engineering and R&D Services grew 10.7%, and Products & Platforms increased 6.0%. In the past few years, we’ve seen more deals comprising both infrastructure and applications services. (At TechMarketView we have reflected this in the way we construct our market forecast model - in particular, the Operations segment see: UK SITS Market Trends and Forecasts 2021.) HCL has won more than 15 deals spanning both infrastructure and apps in the past five quarters with momentum continuing. The move to cloud is in part helping to drive this with deals covering services such as migration, hybrid cloud management and cloud consulting.

HCL continues to benefit from its combination of products and services and the ongoing investment to support the development of its portfolio and people. CVK says he remains “very positive” about the market and the opportunities specifically around cloud and digital.

Posted by: Kate Hanaghan at 09:45

Tags: results   cloud   digital   engineering  

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