Vineet Nayar, Vice Chairman and CEO, HCL Technologies Ltd

India Infoline News Service | Mumbai |

“We see significant opportunity because of contract renewal in America and Europe. “

Vineet Nayar, Vice Chairman and CEO, HCL Technologies Ltd joined the company in 1985 after earning his MBA from XLRI, a leading business management school in Asia. In 1993, he founded Comnet, where he incubated the Remote Infrastructure Management (RIM) industry, which is today a multi-billion dollar IT outsourcing segment. Under Vineet’s leadership, HCLT has been named “Best Employer” in India and Asia by Hewitt Associates, one of “Britain?s Top Employers” by the CRF Institute, as well as receiving a “Workforce Management Optimas Award for HR Innovation” in the U.S. In addition to these, Vineet himself has emerged as a global thought leader and has been lauded by governments, business publications and influencers worldwide for his visionary strategy, his ability to create an entrepreneurial culture, and his warm-hearted, straight-talking approach; with his book “Employees First, Customers Second” receiving rich praise from influencers like the late C.K. Prahalad, Tom Peters, Gary Hamel, Ram Charan and Victor Fung.

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 31 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 ‘Employees First, Customers Second’ which empowers our 85,335 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 4.3 billion ( 22,471 crores), as on (on LTM basis).

Yash Ved of IIFL provides you the media interaction where Vineet Nayar says “We see significant opportunity because of contract renewal in America and Europe. “

How was the quarter as a whole?

There was a 50bps increase in net income margin. Infrastructure services continue to dominate market share. Enterprise services market continues to face headwinds.

We see significant opportunity because of contract renewal in America and Europe.

While America and Europe has seen significant growth and Rest of the world has de-growth.

Our overall strategy is executing well and orders are well placed.

Comment on your revenue growth?

A 31% YoY growth in revenues and a 78% growth in net income this quarter reiterates the fact that robust revenue growth can be achieved profitably. Increased wins in Fortune 500 accounts have resulted in Americas and Europe geographies growing at 34% and 37% YoY respectively. 

  • Americas and Europe grow 17.7% and 17.0% respectively

  • Growth posted by Infrastructure Services at 18.0%, Engineering and R&D Services at 16.4%,Custom Application Services at 13.0% and Enterprise Application Services 11.7%

  • Growth led by Healthcare at 45.1%, Retail & CPG at 17.4%, Manufacturing at 16.9%, Media Publishing & Entertainment at 12.0% and Financial Services at 8.6% respectively.

How many deals HCL won during the quarter?

HCL has won 12 multi-year, multi-million dollar deals this quarter. These engagements have been won across service lines led by Manufacturing, Financial Services and Consumer Services verticals.

What were the key engagements during the quarter?

The quarter saw many significant engagements signed across the world reiterating the continued relevance of HCL’s integrated suite of services.

Freescale Semiconductor has selected HCL for managing and transforming its end-to-end corporate IT Infrastructure landscape. HCL will serve as an exclusive technology partner for Freescale.

HCL has been chosen by a Top 5 global pharmaceutical company for a multi-year, multi-service managed services engagement encompassing end-to-end application support.

HCL has been selected by a leading international organization for a multi-year contract for SAP hosting, installation and support services.

HCL has signed a engagement to support and enhance SAP and other business applications for a US based leading flash memory technology company.

Denon and Marantz has chosen HCL to support its SAP transformation initiative. HCL’s delivery centre in Tokyo, Japan, will be used to deliver these services.

HCL has been chosen by a leading North American airline to develop, implement and deploy a supply chain management system for its inventory management & distribution division.

HCL has been awarded a deal to implement Cloud solutions for a Japan based global leader in parking system & solutions provider.

HCL has been selected by a leading North American airline to deliver a mobility solution focused on significantly improving its supply chain visibility.

HCL has won a multi-year, multi-million deal from a Fortune 500 casino company for supporting their front-office, back-office and marketing applications.

HCL has been empanelled as the ‘Preferred Vendor’ for a project by a US Government Department.

What is your revenue mix?

About 57% of our revenue comes from US, 28% of our revenue comes from Europe and remaining revenue comes from rest of the world.

Your current employee strength?

Our total headcount stood at 85,335.

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