HCL Technologies Limited (HCLTech) has announced its financial results for the second quarter, showcasing robust growth and performance across key metrics. The company has also revealed plans for salary increases and a shift in its US hiring strategy.

Revenue Growth and Financial Highlights

HCLTech reported consolidated revenue of $3,644.00 million for Q2, marking a 5.8% year-on-year (YoY) increase and a 2.8% quarter-on-quarter (QoQ) growth. In constant currency terms, the company achieved a 4.6% YoY and 2.4% QoQ revenue growth.

The company's EBIT (Earnings Before Interest and Taxes) stood at $637.00 million, representing 17.5% of revenue. This includes a 55 basis points impact from restructuring costs. Net income for the quarter was $486.00 million, translating to 13.3% of revenue.

Segment Performance

HCLTech's services segment, comprising IT and Business Services and Engineering and R&D Services, demonstrated strong growth:

• IT and Business Services revenue grew 3.8% YoY in constant currency
• Engineering and R&D Services revenue increased by 13.4% YoY in constant currency
• The combined services segment achieved a 5.5% YoY growth in constant currency

The HCLSoftware segment reported a slight decline of 3.7% YoY in constant currency.

Strategic Developments and AI Initiatives

CEO & Managing Director C Vijayakumar highlighted the company's focus on AI-powered solutions, stating, "A standout quarter on every front — marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100M this quarter."

HCLTech's AI initiatives have gained significant traction, with the company reporting:

• Advanced AI quarterly revenue crossing $100.00 million
• Digital revenue growing 15.0% YoY, now contributing 42.0% of Services revenue

HCL Tech executives indicated that they are seeking a similar environment as the previous quarter, while noting that pipeline and bookings have grown. The company observed spending on discretionary items in some areas, primarily focused on AI initiatives. Advanced AI revenue currently represents approximately 3% of HCLTech's overall revenue.

Client Acquisition and Bookings

The company reported strong momentum in new deal wins:

• Total Contract Value (TCV) of new deal wins reached $2,569.00 million, up 41.8% QoQ and 15.8% YoY
• Added 3 clients in the $20M+ category and 1 client in the $10M+ category on a Year-to-Date basis

Workforce and Attrition

HCLTech continued to strengthen its workforce:

• Total employee count stood at 226,640, with a net addition of 3,489 during the quarter
• 5,196 freshers were added in Q2
• LTM attrition rate improved to 12.6%, down from 12.9% in Q2 of the previous year

Salary Increases and US Hiring Strategy

HCLTech has announced salary increases for employees starting in October. In a significant shift, the company has reduced its dependence on H-1B visas in the US market. Instead, HCLTech plans to increase local hiring and implement training programs to enhance localization efforts in its US operations.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹12.00 per equity share.

Future Outlook

HCLTech has provided the following guidance:

HCLTech's strong Q2 performance, coupled with its focus on AI-driven solutions, strategic client acquisitions, and the new initiatives in employee compensation and US hiring strategy, positions the company well for continued growth in the evolving technology landscape.

HCL Technologies , a leading global technology company, has announced its financial results for the second quarter, showcasing robust growth and strong performance across key metrics.

Revenue Highlights

HCL Technologies reported consolidated revenue of ₹31,942.00 crores for Q2, marking a significant year-on-year growth of 10.7% and a sequential growth of 5.2%. In constant currency terms, the company's revenue grew by 4.6% year-on-year and 2.4% quarter-on-quarter.

Segment-wise Performance

The company's performance across its three main segments was as follows:

Profitability and Margins

HCL Technologies maintained strong profitability with the following key metrics:

• EBIT (Earnings Before Interest and Taxes) stood at ₹5,550.00 crores, representing 17.4% of revenue.
• Net Income reached ₹4,235.00 crores, accounting for 13.3% of revenue.
• The company's EBIT margin for Q2 included a 55 basis points impact of restructuring costs.

Client Acquisition and Bookings

The company continued to demonstrate strong business momentum:

• Total Contract Value (TCV) of new deal wins reached $2,569.00 million, showing impressive growth of 41.8% quarter-on-quarter and 15.8% year-on-year.
• HCL Technologies added 3 clients in the $50 million+ category on a year-on-year basis.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹12.00 per equity share, maintaining its consistent dividend payout for the 91st consecutive quarter.

Workforce Expansion

HCL Technologies continued to invest in its talent pool:

• Total headcount reached 226,640, with a net addition of 3,489 employees during the quarter.
• The company added 5,196 freshers in Q2.
• Attrition rate (on a Last Twelve Months basis) improved to 12.6%, down from 12.9% in the same quarter last year.

Management Commentary

C Vijayakumar, CEO & Managing Director of HCL Technologies, commented on the results: "A standout quarter on every front — marked by strong execution, growing demand for our AI-powered solutions, and Advanced AI revenue exceeding $100M this quarter. Our revenue grew 2.4% sequentially in constant currency with a strong recovery of operating margin to 17.5%. For the first time, our new bookings surpassed $2.5 billion, without reliance on any mega-deal."

Future Outlook

HCL Technologies has provided a positive outlook:

• Company revenue growth is expected to be between 3.0% - 5.0% year-on-year in constant currency.
• Services revenue growth is projected to be between 4.0% - 5.0% year-on-year in constant currency.
• EBIT margin is anticipated to be between 17.0% - 18.0%.

The company's strong performance in Q2, coupled with its focus on AI-powered solutions and robust client additions, positions HCL Technologies well for continued growth in the coming quarters.