DBT Bureau
Bengaluru, 2 September 2024
Shiv Nadar-promoted IT services major, HCLTech is planning to increase its wallet share among G2000 accounts to raise its deal pipeline to around $2.5 billion (per quarter).
“HCLTech will focus on improving its market participation and client coverage within G2000 accounts to increase its deal intake to the range of $2.3 billion–$2.5 billion,” Mirae Asset Capital Markets said in a note. G2000 are the top global companies in terms of sales, profit and market value.
“The company plans to utilize various margin tailwinds to enhance its profitability. The margin levers including a GenAI-led delivery system, G&A optimization, pyramid balancing, global delivery centers, a non-linear revenue model, delivery centers in India, and an AI -led customized learning program, are expected to improve its margins going ahead. However, these margin levers may be partially offset by investments in GenAI and sales capability,” the note said.
The brokerage firm came out with the report after attending the Investor Day 2024 event of the company.
“HCL Tech targets to report industry-leading growth by focusing on high growth areas including five service lines (contributing more than 50% of its overall revenue) and two verticals, BFSI and TMT (telecom, media & entertainment) (which together contribute more than 45% of overall revenue),” the note said.
In the first quarter ended June (Q1FY25), revenue in dollar terms stood at $3.364 billion, a fall of 1.6% over the previous quarter.
The company retained its constant currency revenue growth guidance for FY25 in the range of 3-5%. Operating margin guidance was also maintained at 18-19% for FY25.
