HCL Tech Oct-24
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Questions and Answers

Which of the following factors could potentially impact a company's competitive advantage in IT services?

  • Investment in employee training programs
  • Wage increases in India (correct)
  • Expansion of service offerings
  • Adoption of new technologies

    • What is a significant risk associated with project contracts that the company may face?

  • Excessive regulatory compliance
  • Time and cost overruns on fixed-price projects (correct)
  • Immediate contract renewals
  • Increased budget allocations

    • Which of the following statements best describes a possible outcome of client concentration?

  • Increased negotiation power with suppliers
  • Diversification of service offerings
  • Stability of financial performance
  • Vulnerability to the loss of key clients (correct)

    • What role does political instability play in the context of business operations?

    <p>It can disrupt international operations and affect investments</p> Signup and view all the answers

    What is a significant challenge regarding acquisition integration that companies face?

    <p>Timely and cost-effective integration of acquired assets</p> Signup and view all the answers

    What change occurred to certain software product services starting April 1, 2024?

    <p>They were moved under IT and Business Services and Engineering and R&amp;D Services segments.</p> Signup and view all the answers

    Which segment had the highest EBIT margin in September 2024?

    <p>HCLSoftware</p> Signup and view all the answers

    Which segment experienced the highest YoY basis point change in EBIT margin from September 2023 to September 2024?

    <p>HCLSoftware</p> Signup and view all the answers

    What was the QoQ basis point change in EBIT margin for Services from June 2024 to September 2024?

    <p>110 basis points increase.</p> Signup and view all the answers

    What was the total EBIT margin for all segments in September 2024?

    <p>18.6%</p> Signup and view all the answers

    What method was used to allocate common assets and liabilities between the businesses?

    <p>Based on the last twelve months' revenues</p> Signup and view all the answers

    Which software product segment's management changed effective April 1, 2024?

    <p>Both IT and Business Services and Engineering and R&amp;D Services</p> Signup and view all the answers

    For which quarter is the perpetual license upfront and others revenue highest in the reported metrics?

    <p>30-Sep-24</p> Signup and view all the answers

    What does the subscription and support revenue primarily include?

    <p>Term subscription revenues and support revenues</p> Signup and view all the answers

    What aspect of the revenue reporting was noted to have an immaterial impact?

    <p>The switch in management of certain software products</p> Signup and view all the answers

    What benefit does HCLSoftware’s BigFix provide to the client regarding endpoint management?

    <p>Improves employee experience through automation</p> Signup and view all the answers

    How was the average invested capital computed?

    <p>Based on average of the last 5 quarters</p> Signup and view all the answers

    Which company selected HCLTech for developing an AI-based solution?

    <p>A leading US-based automotive company</p> Signup and view all the answers

    In the metric report, which category had the lowest total revenue for the quarter ended 31-Mar-24?

    <p>Professional Services</p> Signup and view all the answers

    Revenue share from IP partnerships is included in which line of the financial metrics?

    <p>Subscription &amp; Support</p> Signup and view all the answers

    What improvement did the deployment of HCLTech's AI Force bring to tester efficiency?

    <p>Improved it by 15%</p> Signup and view all the answers

    For what purpose is the Actian database being deployed by a Europe-based independent software vendor?

    <p>For application-focused data management</p> Signup and view all the answers

    What functionality does HCLTech plan to implement for a US-based software company?

    <p>Quick search function for duplicate bugs</p> Signup and view all the answers

    What was a major outcome of the HCLSoftware’s deployment in the real estate management sector?

    <p>Enhanced system performance and stability</p> Signup and view all the answers

    What percentage reduction in test automation workload was achieved by HCLTech AI Force?

    <p>40%</p> Signup and view all the answers

    What feature does BigFix's self-healing capabilities aim to fulfill for clients?

    <p>Enhanced compliance across infrastructure</p> Signup and view all the answers

    What has been a key factor in The Standard's growth during its digital transformation?

    <p>Strategic partnership with HCLTech</p> Signup and view all the answers

    What is the total people count projected for 31-Mar-24?

    <p>227,481</p> Signup and view all the answers

    How has the attrition rate changed from 31-Dec-23 to 30-Sep-24?

    <p>Varied but showed an overall decrease</p> Signup and view all the answers

    Which month has the highest number of freshers added?

    <p>30-Sep-23</p> Signup and view all the answers

    What percentage of employees were women on 30-Jun-24?

    <p>28.7%</p> Signup and view all the answers

    What does the 'Net Addition' indicate during the quarter ending 30-Jun-24?

    <p>Loss of workforce</p> Signup and view all the answers

    What has HCLTech provided for The Standard during its partnership?

    <p>Innovative problem-solving capabilities</p> Signup and view all the answers

    Which quarter showed the lowest total people count?

    <p>30-Jun-24</p> Signup and view all the answers

    What trend is observed in the Sales and Support workforce from 30-Sep-23 to 30-Sep-24?

    <p>Fluctuation with a slight decline</p> Signup and view all the answers

    What is the trend in the Technical workforce from 31-Dec-23 to 30-Sep-24?

    <p>Consistent decrease</p> Signup and view all the answers

    What was the LTM FCF/NI percentage reported?

    <p>119%</p> Signup and view all the answers

    Which segment reported the highest percentage of total revenue as of 30-Sep-24?

    <p>IT and Business Services</p> Signup and view all the answers

    What was the Year-over-Year (YoY) constant currency growth for Engineering and R&D Services?

    <p>4.3%</p> Signup and view all the answers

    Which quarter showed the highest EBIT margin according to the provided data?

    <p>Sep'24</p> Signup and view all the answers

    What was the total revenue in $M reported for Jun'24?

    <p>3,364</p> Signup and view all the answers

    What was the Net Income margin for Sep'23?

    <p>14.7%</p> Signup and view all the answers

    How did the YoY CC Revenue growth trend from Dec'23 to Mar'24?

    <p>Increased then decreased</p> Signup and view all the answers

    What is the expected medium term focus for improving cash conversion?

    <p>Drivers of efficiency and innovation</p> Signup and view all the answers

    What was the performance trend for the Net Income from Sep'20 to Sep'24?

    <p>Increased steadily</p> Signup and view all the answers

    Which quarter reported a revenue of ₹28,862 crores?

    <p>Mar'24</p> Signup and view all the answers

    What type of services contributed to 90.4% of total revenue in the quarter ending 30-Sep-24?

    <p>Services combined (A + B)</p> Signup and view all the answers

    What was the diluted EPS reported for Sep'24?

    <p>62.02</p> Signup and view all the answers

    What was the QoQ CC growth for total revenue from Jun'24 to Sep'24?

    <p>1.6%</p> Signup and view all the answers

    Study Notes

    HCLTech Investor Release Q2 FY25

    • Date: October 14, 2024
    • Financial Period: Quarter ended September 30, 2024
    • Company: HCL Technologies Limited
    • Contact Person: Manish Anand, Company Secretary
    • Document: Investor Release
    • BSE Scrip Code: 532281
    • NSE Scrip Code: HCLTECH

    Financial Highlights

    • Revenue (INR): ₹28,862 Crores, up 2.9% QoQ, 8.2% YoY
    • Revenue (USD): $3,445M, up 2.4% QoQ, 6.8% YoY
    • EBIT: ₹5,362 Crores (18.6% of revenue), up 11.8% QoQ, 8.7% YoY
    • Net Income (NI): ₹4,235 Crores (14.7% of revenue), down 0.5% QoQ, up 10.5% YoY
    • Return on Invested Capital (ROIC): 35.7% on LTM basis for the company, 43.5% for services; up by 353 and 403 bps YoY respectively
    • Free Cash Flow (FCF)/Net Income (NI): 119% (on LTM basis)
    • Dividends: 12/- per share; 87th consecutive dividend payout

    People Metrics

    • Total People: 218,621
    • Net Addition: (780)
    • Freshers: 2,932
    • LTM Attrition: 12.9% (down from 14.2% in Q2 of last year)

    Bookings

    • Total Contract Value (TCV): $2,218M (New deal wins)

    Safe Harbor Statement

    • The release contains forward-looking statements that involve risks, uncertainties, assumptions.
      • Factors that could cause actual results to differ materially include regulatory proceedings, earnings fluctuations, competitive pressures, wage increases in India, client acceptance of services and products, and restrictions on immigration.

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    HCL Technologies Q2 FY25 Investor Release PDF

    Description

    Test your knowledge on the factors affecting competitive advantage in IT services. This quiz covers project risks, client concentration outcomes, and the impacts of political instability on business operations. Additionally, explore financial performance metrics from recent years.

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