HCL Technologies Ltd.

Overview Key strengths Key risks Good earnings quality owing to diversified information technology (IT) service offerings and established client relationships. Slower revenue growth amid macroeconomic headwinds and reduced IT spending. Healthy profitability, backed by high utilization rates and access to offshore resources. Profitability constraints from continued investments in new-age digital technology. Net cash position with strong cash generation despite an increased commitment to shareholder distributions. We expect HCL?s revenue to grow 4.3% in fiscal 2025 (year ending March 31), compared with reported growth of 5.4% in fiscal 2024. Our growth forecast for fiscal 2025 is weaker than our previous expectation of 6.6% because lower discretionary spending amid weak macroeconomic conditions continue to weigh on the global IT services sector. That

...HCL Technologies Ltd.'s revenue growth will remain sensitive to macroeconomic headwinds. We expect HCL's revenue to grow 4.3% in fiscal 2025 (year ending March 31), compared with reported growth of 5.4% in fiscal 2024. Our growth forecast for fiscal 2025 is weaker than our previous expectation of 6.6% because lower discretionary spending amid weak macroeconomic conditions continue to weigh on the global IT services sector. That said, we believe HCL Tech' sizable deal wins in recent quarters will sustain its revenue growth over the next 12-24 months. The company reported deal bookings of close to US$10 billion in fiscal 2024, and US$4.2 billion in the first half of fiscal 2025. We believe these will translate into revenues over the next 12 to 24 months....

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