HCLTech, a global technology company, recently announced its financial results for the fourth quarter and full year ended on March 31, 2024. The company reported a full-year revenue of $13.3 billion, reflecting a growth of 5.4% year-on-year (YoY). The Digital Services segment also saw a growth of 5.3% and now contributes to 37.3% of IT Services revenue. Additionally, HCLSoftware’s Annual Recurring Revenue reached $1.02 billion.
During FY24, HCLTech secured 73 large deals, totaling to $9.76 billion in new deal wins – a growth of 10% YoY. The company’s revenue for the quarter stood at $3.43 billion, showing a YoY growth of 6%. HCLTech won 21 large deals during the quarter, contributing to its overall success.
Geographically, the Americas exhibited the fastest growth with a YoY increase of 6.8%, followed by Europe with a growth of 5.5%. The Financial Services and Telecommunications, Media, Publishing & Entertainment verticals were the leading contributors to industry vertical growth. While Financial Services witnessed a YoY CC growth of 12.1%, the Telecommunications, Media, Publishing & Entertainment vertical achieved an impressive growth of 39.2% during the quarter.
The company remained committed to its shareholders by announcing a dividend of ₹18/share for the quarter, amounting to a total of ₹52/share for FY24. HCLTech also prioritized its people count, with a total of 12,141 freshers hired during the year. Furthermore, the company’s LTM attrition rate dropped to 12.4% from 19.5%.
HCLTech’s CEO and Managing Director, C Vijayakumar, credited the company’s growth to its dedication to clients and its potential in the AI space. As global enterprise technology spend continues to grow, HCLTech is well-positioned to capitalize on the adoption of AI through its AI-led propositions, global delivery model, and a suitable mix of technology services and products.
Looking ahead, HCLTech has provided guidance for FY25, projecting a revenue growth of 3%-5% YoY (CC) and an EBIT margin of 18%-19%. The company’s Chief Financial Officer, Prateek Aggarwal, emphasized that the strong performance in FY24 demonstrated the resilience of HCLTech’s business model.
HCLTech is experiencing significant growth in the cloud and cybersecurity sectors. The company’s focus on AI and GenAI has led to the launch of the HCLTech AI Force, an innovative platform that enhances software development and engineering workflows by injecting intelligence into the process. HCLTech has secured various GenAI deals, such as automating data extraction for a biopharmaceutical company and migrating machine learning models for a financial services provider.
Lastly, HCLTech’s commitment to ethical practices has earned the company recognition as one of the World’s Most Ethical Companies in 2024 by Ethisphere. It has also received other prestigious accolades, including a high rating in the MSCI ESG ratings and inclusion in the S&P Global Sustainability Yearbook 2024.
HCLTech’s achievements and commitment to innovation, combined with its broad portfolio of services and products, continue to position the company as a global leader in technology solutions for various industries. To learn more about HCLTech and its transformative capabilities, visit their official website at hcltech.com.
In addition to the information provided in the article, it’s important to discuss some current market trends and forecasts related to HCLTech’s focus on AI-led solutions.
One key trend in the technology industry is the increasing adoption of artificial intelligence (AI) in various sectors. AI has the potential to revolutionize businesses by automating processes, improving efficiency, and making data-driven decisions. As HCLTech focuses on AI-led solutions, it is well-positioned to benefit from this trend and cater to the growing demand for AI technologies.
The market for AI is projected to continue expanding in the coming years. According to a report by Grand View Research, the global AI market size is expected to reach $733.7 billion by 2027, growing at a compound annual growth rate (CAGR) of 42.2% from 2020 to 2027. This presents a significant opportunity for HCLTech to capitalize on the increasing demand for AI solutions.
However, along with the opportunities, there are also challenges and controversies associated with the adoption of AI. One challenge is the ethical considerations surrounding AI, such as bias in machine learning algorithms and the potential impact on jobs. Companies like HCLTech need to address these concerns and ensure the responsible and ethical use of AI technologies.
Another challenge is the increasing competition in the AI market. Many technology companies are investing heavily in AI research and development, making the market highly competitive. HCLTech needs to differentiate itself by offering unique and innovative AI solutions to stay ahead of the competition.
Overall, HCLTech’s focus on AI-led solutions aligns well with the current market trends and offers significant growth potential. The company’s strong financial results and commitment to innovation position it as a key player in the technology industry.
For more information about HCLTech and its AI-led solutions, you can visit their official website at hcltech.com.
(Source: Grand View Research – AI Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Technology (Machine Learning, Natural Language Processing), By Application, And Segment Forecasts, 2020 – 2027)