Q3 2025 HCL Technologies Ltd Earnings Call Transcript
Key Points
- HCL Technologies Ltd (BOM:532281) reported a sequential revenue growth of 3.8% and a year-on-year growth of 4.1% in constant currency.
- The company's operating margins improved to 19.5%, with the software business achieving an all-time high EBIT margin of 34.5%.
- HCL Technologies Ltd (BOM:532281) added two clients in the $100 million category and four each in the $50 million and $20 million categories, indicating strong client relationships.
- The company reported a 23% year-on-year growth in Annual Contract Value (ACV), showcasing strong deal momentum.
- HCL Technologies Ltd (BOM:532281) continues to leverage AI and generative AI to drive transformation, with significant wins in AI-led projects and a strong pipeline nearing all-time highs.
- HCL Software experienced a year-on-year revenue decline of 2.1% in constant currency, with some customers deferring renewal decisions.
- The company's attrition rate increased slightly to 13.2% on a last twelve months basis, reflecting challenges in retaining talent.
- There is a planned reduction in a mega telecom deal, which is expected to impact Q4 performance.
- The automotive sector remains challenged, with expectations of continued declines for one or two more quarters.
- HCL Technologies Ltd (BOM:532281) anticipates a softer Q4 due to the completion of a large transformation project and slower ramp-up of discretionary deals.
Ladies and gentlemen, good day, and welcome to the HCLTech's Q3 FY25 earnings conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Mohta, Head, Investor Relations. Thank you, and over to you, sir.
Hi, everyone. A very warm welcome to HCLTech's quarter-three FY25 earnings call. We have with us Mr. C. Vijayakumar, CEO and Managing Director, HCLTech; Mr. Shiv Walia, Chief Financial Officer, along with the broader leadership team, to discuss the performance of the company during this quarter, followed by Q&A.
In the course of this call, certain statements that will be made are forward-looking, which involve a number of risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those in such forward-looking statements.
All forward-looking statements made herein are based on information presently
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