HCL Technologies reported the fastest pace of revenue growth among the industry in fiscal year 2019.
The company’s revenue grew 11.8% to $8.63 billion in FY19 which surpassed the company’s own growth guidance.
The company has also given a robust revenue guidance of 14-16% for FY20 in constant currency terms.
In an exclusive conversation with Moneycontrol’s Sakshi Batra, Prateek Aggarwal, CFO, HCL Technologies said,
“Consistent order wins will help us achieve higher revenue growth as well as our $10 billion revenue target for FY20.”
Margin guidance for financial year 2020 has however been reduced by 100 basis points to 18.5-19.5%.
The management also indicated that deal ramp-ups along with digital investments have led to cut in margin guidance.
The company will however remain on investment mode and will continue to invest in its Mode-2 business.
HCL Tech would continue to be on the lookout for small acquisitions to strengthen its business.
Rupee appreciation and macro headwinds including the impending US-Visa fee could be near-term challenges.
The company is unhappy with the current attrition numbers and hopes to reduce them.
The stock price of HCL Technologies fell sharply despite robust revenue growth guidance. The street was disappointed
with lower margin guidance, decline in Q4 profits and lower than estimate organic growth guidance.
