1. HCL TechnologiesHCL Technologies
Business PerformanceBusiness Performance
and Strategicand Strategic
Direction of HCLDirection of HCL
TechnologiesTechnologies
--Prepared by:Prepared by:
Sourya Kundu.Sourya Kundu.

2. Recent Business performance of HCLRecent Business performance of HCL
TechnologiesTechnologies
 HCL Technologies Ltd. is the fourthHCL Technologies Ltd. is the fourth
largest software services exporter oflargest software services exporter of
India.India.
 Since the start of the year 2015, HCLSince the start of the year 2015, HCL
Technologies shares had beenTechnologies shares had been
underperforming, however, at the endunderperforming, however, at the end
of January, the stock surged overof January, the stock surged over
11%.11%.
 HCL Technologies reported 28 perHCL Technologies reported 28 per
cent rise in consolidated net profit atcent rise in consolidated net profit at
Rs 1,915 crore for the second quarterRs 1,915 crore for the second quarter
ended December 2014 on growth inended December 2014 on growth in
European business as well as life-European business as well as life-
sciences and healthcare verticals.sciences and healthcare verticals.
 The 8 best-performing Nifty stocksThe 8 best-performing Nifty stocks
year-to-date is shown in the figure onyear-to-date is shown in the figure on
the right hand side.the right hand side.
--Source: http://www.openingbell.in/Source: http://www.openingbell.in/

3. Recent Business PerformanceRecent Business Performance
 HCL Tech’s revenue grew 6.3% quarter-on-quarter to Rs. 9,283HCL Tech’s revenue grew 6.3% quarter-on-quarter to Rs. 9,283
crore and dollar revenue rose 4% to USD 1.49 billion duringcrore and dollar revenue rose 4% to USD 1.49 billion during
October-December quarter as against expected dollar revenue ofOctober-December quarter as against expected dollar revenue of
USD 1.477 billion.USD 1.477 billion.
 The company’s trailing 12-month (TTM) EPS was at Rs. 95.95 perThe company’s trailing 12-month (TTM) EPS was at Rs. 95.95 per
share as per the quarter ended December 2014. The stock’s price-share as per the quarter ended December 2014. The stock’s price-
to-earnings (P/E) ratio was 21.21 compared to industry’s P/E ofto-earnings (P/E) ratio was 21.21 compared to industry’s P/E of
8.78. The latest book value of the company is Rs. 224.10 per share.8.78. The latest book value of the company is Rs. 224.10 per share.
At current value, the price-to-book value (P/BV) of the company isAt current value, the price-to-book value (P/BV) of the company is
9.08.9.08.
 For the quarter ended December, HCL Technologies had cash andFor the quarter ended December, HCL Technologies had cash and
cash equivalents of Rs 1,221 crore.cash equivalents of Rs 1,221 crore.

5. What WorkedWhat Worked
 A balanced portfolio, integrated IT services andA balanced portfolio, integrated IT services and
engineering capabilities have ensured that HCL remainsengineering capabilities have ensured that HCL remains
service provider of choice for companies looking forservice provider of choice for companies looking for
business model transformation;business model transformation;
 The company signed 15 transformational engagementsThe company signed 15 transformational engagements
during this quarter with more than USD one billion ofduring this quarter with more than USD one billion of
total contract value (TCV).total contract value (TCV).
 Total headcount of the company crossed the one lakhTotal headcount of the company crossed the one lakh
mark to stand at 1,00,240 at the end of December, withmark to stand at 1,00,240 at the end of December, with
gross additions at 11,734 and net at 4,718.gross additions at 11,734 and net at 4,718.
 Bullish stance maintained by the brokerages;Bullish stance maintained by the brokerages;
 Better than expected growth in revenue, better margins,Better than expected growth in revenue, better margins,
strong deals and higher net profit .strong deals and higher net profit .

6. Strategic Direction Of HCLStrategic Direction Of HCL
TechnologiesTechnologies
 In order to expand the retail base, HCL Tech’sIn order to expand the retail base, HCL Tech’s
Board has recommended issuance of bonusBoard has recommended issuance of bonus
shares in the ratio of 1 share for every 1 shareshares in the ratio of 1 share for every 1 share
held. It also declared an interim dividend of Rs. 8held. It also declared an interim dividend of Rs. 8
per equity share of Rs. 2 each. So, all positiveper equity share of Rs. 2 each. So, all positive
vibes around the company makes the stockvibes around the company makes the stock
attractive;attractive;
 Stellar quarter results, coupled with attractiveStellar quarter results, coupled with attractive
valuations, make the stock a strong bet in thevaluations, make the stock a strong bet in the
Indian stock market.Indian stock market.

7. Employees SpeakEmployees Speak
"Our continued focus in developing next generation"Our continued focus in developing next generation
propositions around digitalisation, engineering platformpropositions around digitalisation, engineering platform
services and target operating model for enterprise ITservices and target operating model for enterprise IT
have allowed us to stay ahead of the innovation curvehave allowed us to stay ahead of the innovation curve
and gain significant market share in the global ITand gain significant market share in the global IT
services market,"services market,"
-HCL Technologies President and CEO Anant Gupta-HCL Technologies President and CEO Anant Gupta
"The Global IT industry is undergoing a seismic change as"The Global IT industry is undergoing a seismic change as
the scope of IT buying expands to capture adjacenciesthe scope of IT buying expands to capture adjacencies
beyond IT. This is not only changing the contours of thebeyond IT. This is not only changing the contours of the
traditional buyer as we know it but also bringingtraditional buyer as we know it but also bringing
technology to the very centre stage of organisationaltechnology to the very centre stage of organisational
competitiveness,"competitiveness,"
-HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar-HCL Technologies Chairman and Chief Strategy Officer Shiv Nadar

8. Thank YouThank You