2. *HCL Confidential
2
Revenue Growth Intact
All Businesses continue to deliver positive revenue growth
QoQ Growth AMJ'10 JAS'10 OND'10 JFM'11 4-Qtr CQGR
Revenues 7.7% 9.0% 7.5% 5.8% 7.5%
Service Lines
Enterprise Application Services 11.9% 6.3% 5.5% 6.7% 7.6%
Engineering and R&D Services 10.9% 4.0% 6.3% 1.6% 5.7%
Custom Applications 6.7% 15.0% 9.1% 6.7% 9.3%
Infrastructure Services 8.9% 8.8% 9.5% 8.5% 8.9%
BPO Services -12.5% 5.7% 2.8% 0.8% -1.1%
Verticals
Financial Services 5.5% 10.0% 5.2% 12.6% 8.3%
Manufacturing 9.9% 8.7% 7.2% 6.3% 8.0%
Telecom 1.0% 9.9% 5.8% 1.0% 4.4%
Retail & CPG 17.5% 13.0% 15.5% 0.3% 11.4%
Media Publishing & Entertainment 0.7% 1.9% 6.2% 2.3% 2.8%
Healthcare 18.3% 11.7% 7.5% 1.2% 9.5%
Energy Utilities Public Sector 6.0% 7.9% 13.2% 7.1% 8.6%
Geos
US 11.3% 2.8% 5.8% 0.7% 5.1%
Europe -0.7% 18.2% 7.2% 7.3% 7.8%
Asia Pacific 8.3% 19.8% 14.5% 21.7% 16.0%
Growth engines for the
quarter – Infra, Custom
Apps, EAS
Custom Apps business
crosses $1Bn milestone
Growth engines for the
quarter - Financial
Services, E&U Public
Sector, Manufacturing
Growth engines - Asia
Pacific, Europe
Asia Pacific business
cross $500 Mn milestone
* Businesses with JFM’11 QoQ or 4-Qtr CQGR >5% marked Green
Q3 Revenues - $915 Mn
LTM Revenues cross INR
15,000 Crore milestone
3. *HCL Confidential
3
While expanding Profit Margins
Operating and Net Income register double digit growth. Big Turnaround in Profits Margins
over last 6 months
Margins AMJ'10 JAS'10 OND'10 JFM'11
Gross Margin 33.1% 31.6% 31.6% 32.0%
EBITDA Margin 18.6% 16.3% 16.3% 17.3%
EBIT Margin 15.3% 12.9% 13.1% 14.4%
Net Margin 10.0% 8.9% 10.3% 11.3%
EBIT Margins expand
by 130bps
Operational Parameters AMJ'10 JAS'10 OND'10 JFM'11
SG&A as a % of Total Revenue 14.5% 15.4% 15.2% 14.7%
Days Sales Outstanding (DSO) 66 61 61 55
Utilization Offshore-Including trainees 72.9% 70.1% 70.1% 71.9%
Utilization Offshore-Excluding trainees 77.0% 74.1% 75.0% 76.3%
Utilization Onsite 95.2% 95.7% 95.9% 96.5%
Offshore Realization per man-month ($) 3,545 3,616 3,640 3,692
Onsite Realization per man-month ($) 12,983 13,107 13,274 13,426
Operating efficiencies
helping gain of Profit
Margins
SG&A down.
DSO down.
Utilization up.
Realization up.
HCL recorded lowest
DSO in Indian IT
Industry.
4. *HCL Confidential
4
Cash Flow Conversion
- Net Income to Operating Cash Flow @ 114% for JFM’11
Financial Year Ended…
9 months
ended
US$ Mn June'03 June'04 June'05 June'06 June'07 June'08 June'09 June'10 March’11
Net Income 58.0 171.9 138.0 169.1 293.5 280.0 264.4 280.6 264.0
Operating Cash
flow
89.7 123.6 149.8 186.3 268.1 348.7 205.9 383.5 207.4
Operating Cash Flow/ Net Income
For the Period 155% 72% 109% 110% 91% 125% 78% 137% 79%
Two Years
Rolling Average
113% 90% 109% 101% 108% 101% 107%
Not
Applicable
5. *HCL Confidential
5
Market share momentum demystified..
HCL is the only company to expand market share
33.5 % of all new customer revenue across the above peer group came to HCL – demonstrating the
increasing value customers see in engaging with HCL
7. *HCL Confidential
7
Clients not only giving more business to HCL,
but also recognizing Value created by HCL Employees
Number of $10mn+,
$20mn+, and $50mn+
clients have more than
doubled over last 3
years
Revenue per Employee AMJ'10 JAS'10 OND'10 JFM'11
HCL Revenue per Employee 48,096 47,714 48,515 50,219
HCL Revenue per
Employee crosses
$50,000 milestone.
Highest in the Industry.
8. *HCL Confidential
8
Leading in Client Reference Scores
Source: 2010 N.America Application outsourcing wave
HCL Client Reference Scores are the highest across 10 parameters
Survey conducted by independently by Forrester for the North America Application wave
HCL positioned above larger peers like Dell, Cognizant, TCS, CSC, Infosys, HP and Capgemini
In Forrester’s own words “HCL, which was not included in our prior analysis, has come a long way in the
marketplace in that time frame and is clearly worthy of its Leader status”
9. *HCL Confidential
Recent Downgrades
Asia Poll Rankings
Analyst 2010 2009 HCL Infosys TCS Wipro
CLSA 1 1 Under Perform Outperform* Outperform* Outperform*
JP Morgan 2 3 Over Weight Neutral Over Weight Over Weight
CSFB 3 4 Buy Neutral Buy Buy
Kotak 4 2 Reduce Buy Buy Add*
Citi 5 5 Buy Hold Hold Buy
IIFL 6 12 Buy Buy Add* Add*
Morgan Stanley 7 11 Over Weight Over Weight Equal Weight Equal Weight
HSBC 8 7 Over Weight Over Weight Over Weight Neutral
Religare 9 22 Buy Hold Hold Hold
Motilal Oswal 10 19 Buy Buy Neutral Neutral
Analyst Rating Impact …
9
Composite Rating (Top 10) +8 +6 +6 +6
Dip
Flat
Improvement
Change in Ranking in Asia Poll
Rankings
Buy / Over
Weight
Outperform
Neutral /
Underperform
/ Reduce /
Hold
Sell /
Restricted
Legend of Ratings
10. *HCL Confidential
10
HCL has positioned itself as the CIO’s Best Friend
Dec 2010
Finding the right vendor
partner for your IT
organization: HCL
11. *HCL Confidential
11
Leadership : Infrastructure Management
March 11, 2011
The Forrester Wave™: Global IT Infrastructure
Outsourcing, Q1 2011
29 March 2011
Gartner Magic Quadrant for Help Desk Outsourcing,
North America