Global enterprise technology spend will only grow with adoption of AI
AI and GenAI are key areas of focus for HCLTech https://www.hcltech.com/ which recently launched HCLTech AI Force, an innovative GenAI platform that accelerates time-to-value by transforming the software development and engineering lifecycle, delivering greater productivity, improved quality and faster release timelines.
“It is system agnostic and offers a highly customizable suite of GenAI-based solutions that inject intelligence into software development and engineering workflows to improve efficiency and developer experience,” the group reported on 26 Apr 2024.
HCLTech is witnessing strong growth in cloud and cybersecurity https://www.meity.gov.in/ , he said, announcing the group’s FY24 performance.
“HCLTech continues to lead the industry in FY24 with good USD revenue growth of 5.4% YoY during challenging times through our strong commitment to our clients and our people,” said C Vijayakumar, CEO & Managing Director, HCLTech.
The company reported full year revenue of US$13.3 billion, up 5.4% YoY.
“More importantly, we have translated this growth into even higher value creation for our shareholders with our OCF (operating cashflow) coming at US$2,711 million, up 21.6% YoY and FCF (free cashflow) at US$2,584 million, up 27.7% YoY.
“As we look ahead, global enterprise technology spend will only grow with adoption of AI. We are well positioned to capitalize with our AI-led propositions, global delivery model and ideal mix of technology services and products,” he said.
“The performance underlines the resilience of our business model with revenue at Rs.109,913 crore, growing 8.3%, said Prateek Aggarwal, Chief Financial Officer, HCLTech.
“We delivered this industry-leading growth with EBIT at Rs.20,027 crore, up 8.4%. Net Income (NI) for the year came in at Rs.15,702 crore, up 5.7%, translating to an EPS of Rs.57.86,” he elaborated.
Industry vertical growth was led by Financial Services and Telecommunications, Media, Publishing & Entertainment. While Financial Services grew at 12.1% YoY CC for the full year, the Telecommunications, Media, Publishing & Entertainment vertical recorded 39.2% growth (YoY) during the quarter.
For FY25, the company has given a guidance of 3%-5% revenue growth YoY (CC) and EBIT margin at 18%-19%.
Among the select GenAI deals that HCLTech won in the quarter are:
A US-based biopharmaceutical company selected HCLTech to leverage GenAI and data engineering to automate the extraction of structured and unstructured data from diverse sources.
A US-based financial services provider selected HCLTech to migrate its existing machine learning models to new-age GenAI platforms for greater agility, improvement and innovation in service delivery. Fiinews.com
