HCL raises full year guidance after winning a dozen new deals

• HCL revised its revenue guidance and now expects to grow between 16.5% to 17% over this year in constant currency (CC) terms.
  
  
• The guidance for operating margins has been revised to 19-19.5%.
  
  
• “Pipeline stance at an all-time high. We expect conversion in the coming quarter,” said CEO C Vijayakumar.

HCL Technologies has met analyst expectations as it posted quarterly revenue growth of 2.3% $2,543, in dollar terms. The company’s net income hit $426, up 13.4% from last quarter.


The company also revised its annual guidance upwards. It now expects revenue to grow between 16.5% to 17% over this year in constant currency (CC) terms from 16% earlier. The guidance for operating margins has been revised to 19-19.5%.


“It’s been a good quarter. Growth is good, which is why we’re revising our guidance” said C Vijayakumar, president and CEO of HCL.


In the third quarter, HCL signed 12 deals, led by IT transformation, manufacturing and financial services .“I’m proud to announce we crossed $10 billion annualised revenue run rate. We saw a dip in bookings. However, pipeline stance at an all-time high. We expect conversion in the coming quarter,” said Vijayakumar.


“Operating cash flow is over $700 million for the quarter,” said Prateek Aggarwal, chief financial officer.


HCL will also give out dividends of ₹2 per share on double the number of shares post bonus for the 68th consecutive quarter


“We only have one quarter to go which is why we have a more clear view of how the year is going to end, which is why we can now narrow down our expectations,” said Aggarwal.