HCL Technologies Ltd. (HCL), a leading global IT services provider, today announced its results for the second quarter for the financial year 2009-10. HCL has posted market leading growth with Global revenues increasing by 28% YoY.
HCL’s European business posted revenue increase of 39% year-on-year and 5% quarter-on-quarter. This demonstrate increasing market recognition of the value HCL delivers to its customers in Europe and validates HCL’s Go-To-Market (GTM) strategy in the geography. The GTM encompasses integrated horizontal, sector and geographic focus. It has ensured HCL’s success in a dynamic European market environment and is geared to deliver a balanced growth, going forward.
During Calendar 2009, HCL Europe enhanced its European footprint by strengthening its leadership position in Continental Europe and by expanding operations in France, Germany and Sweden. The latter two offices support the DACH and Nordic regions respectively. It also enhanced its presence in Italy. The European companies with whom HCL Europe has signed new or increased business during the year, include Nokia, IBS and Linde Group in Germany.
“We’re very satisfied with the growth achieved across the region this quarter, commented Rajeev Sawhney, President for HCL Europe. “We have made investments in Europe, which are now showing signs of early success. Calendar 2009 has been marked by economic and business uncertainty. Inspite of the same, HCL Europe has posted industry leading growth at 9% CQGR. The deals signed by HCL in the last few quarters have been broad based across multiple sectors and horizontals in UK and Continental Europe”.
The development of HCL Europe’s horizontal and vertical capabilities has included the targeted acquisition of AXON, the world’s largest independent SAP consultancy. AMR published a case study on SAP implementation by HCL AXON for Birmingham City Council highlighting the ‘huge business value’ generated (£400m worth of savings over just three years) by HCL. AMR categorised this as a ‘business transformation’ case.
HCL received industry recognitions, such as, the FT ArcelorMittal Boldness in Business Award, Britain’s Top Employer’s Award and Investor of the Year by the Greater Paris Investment Agency.
Q2 FY10 Financial Highlights for HCL Technologies
- Overall Q2 Revenues at US$ 652 million; up 29% YoY
- Net Income at US$ 64 million
Q2 FY 10 Financial Highlights for HCL Europe
- HCL Europe at USD 750 million based on annual revenue run-rate.
- HCL Europe contributes 30% to HCL’s overall revenues
- HCL Europe posts 39% growth YoY and 5% QoQ
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.
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 54,443 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.3 billion (Rs. 11,270 crores), as on 30th September 2009 (on LTM basis). For more information, please visit www.hcltech.com
About HCL Enterprise
HCL is a $5 billion leading global Technology and IT Enterprise that comprises two companies listed in India - HCL Technologies & HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups, a pioneer of modern computing, and a global transformational enterprise today. Its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products across a wide range of focused industry verticals. The HCL team comprises over 60,000 professionals of diverse nationalities, who operate from 26 countries including over 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information, please visit www.hcl.in