HCL Technologies Limited - Financial Results Update - Quarter Ended 30th June, 2004 & Fiscal Year 2003-'04; HCL Technologies Revenues Grow 8% Sequentially.NEW DELHI New Delhi (dĕl`ē), city (1991 pop. 294,149), capital of India and of Delhi state, N central India, on the right bank of the Yamuna River. , India -- HCL Technologies HCL Technologies is India’s 5th largest [2] and a leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Limited:
FY 2003 -'04 Highlights Quarter 4, FY 2003 -'04 Highlights
-- Net Income soars 196% YoY -- Net Income soars 57% QoQ
-- Manpower ramps up to 16,358 -- EBITDA expands by 320 basis
from 10.041 points
-- 500% dividend paid out for -- BPO registers 15% QoQ growth
the year
-- 200% dividend on Face Value
of share declared
The consolidated balance sheet and profit & loss statement for the
Fiscal year 2003-'04 are based on the audited financial results of HCL
Technologies as per US GAAP
Consolidated under US GAAP
20th September, 2004 www.hcltech.com
KEY HIGHLIGHTS Financial Year 2003-2004 --Revenues up 37% YoY, from $415.9 million to $567.9 million --Net Income registers impressive 196% growth YoY, up from $58.04 million to $171.95 million --Number of clients up from 385 in June '03 to 466 in June '04 --6317 employees added in FY '03-'04; manpower up from 10,041 to 16,358 as on June '04 Q4 FY2004 - Financial Highlights --Revenues at $ 160.48 million up by 8% QoQ --EBITDA up by 25% QoQ --EBITDA margin up 320 basis points sequentially: margins rise across all business segments --Consolidated net income at $ 45.37 million, up by 57% sequentially --Days sale outstanding at 61 days, down from 67 days in the last quarter --Final dividend of 200% of face value of each share declared. Total dividend payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. at 500% per share for the year, including interim dividends Q4 FY2004 - Business Highlights --Total clients at 466, including 56 Fortune 500 clients --18 new clients. Clients having a run rate of more than $1mn stood at 105 --Net addition of 1,575 employees of which 832 were added in the software services business and 611 in BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra "HCL HCl hydrochloric acid. Technologies' strong financial results are the outcome of a carefully crafted long-term strategy, defining realistic, implementable programs for rebuilding and growth. We have used organic and non-organic measures to augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: our existing capabilities and add new revenue streams to our business. We undertook a substantial management renewal program to add seasoned industry professionals across the globe and our strategic alliance partners, namely Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank , British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. and Jones Apparel Group Jones Apparel Group, Inc., a Fortune 500 company, is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. The company also markets directly to consumers through our chain of specialty retail and value-based stores, and operates the Barneys New have been important constituents in our rapid transformation. "Today, HCL Technologies is a much stronger, re-vitalized organization poised to reap the benefits of investments made over the last 2-3 years and embrace the next phase of growth." Shiv Nadar Shiv Nadar is an Indian businessman and educationalist and is the current Chairman and CEO of HCL Technologies. Nadar, known as Magnus (Wizard in Persian) amongst his friends, founded HCL in 1976 along with Ajai Choudary and three more colleagues. Chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. HCL Technologies
Q4 FY 2004 Results
Performance Review
------------------
Healthy Revenue Revenues from software business showed good
growth driven by traction with a growth of 6%. Overall HCLT
Software Services revenues in the quarter grew by 8%.
business
US$ Q2FY04 Q3FY04 Q4FY04
-----------------------------------------------
Software Services
business 113.1 119.9 126.9
QoQ 10.4% 6.0% 5.9%
HCLT revenues 136.5 148.6 160.5
QoQ 11.7% 8.9% 8.0%
-----------------------------------------------
Continued The company's EBITDA expanded by 250 bps during
improvement in the current quarter continuing the trend
operating metrics established in the previous four quarters.
EBITDA margin for the quarter stood at 23.2%.
Q1FY04 Q2FY04 Q3FY04 Q4FY04
-----------------------------------------------
EBIDTA margin 17.4% 19.6% 20.0% 23.2%
-----------------------------------------------
Continued ramp-up Manpower addition continued to remain strong
on manpower, with the recruitment of 3,682 employees during
adding scale the quarter with a net addition of 1,575
people. This includes 832 people in software
services and 611 in BPO.
Nos Q2FY04 Q3FY04 Q4FY04
----------------- ------ ------ ------
Manpower strength 13,065 14,783 16,358
Net addition 1,062 1,718 1,575
-----------------------------------------------
Top clients The current top 5, top 10 and top 20 clients of
maintain good the company have grown by 5.8%, 5.9% and 7.9%
growth rates respectively on a sequential basis. The revenue
contribution from top clients is given below:
% Revenue Q2FY04 Q3FY04 Q4FY04
--------- ------ ------ ------
Top 5 33.0 31.1 30.9
Top 10 42.8 41.9 40.8
Top 20 54.2 52.7 52.2
-----------------------------------------------
Highly liquid Cash and treasury assets currently make up
balance sheet around 57% of HCLT's balance sheet. The DSO at
the end of the quarter stands at 61 days as
compared to 67 at the end of the previous
quarter.
-----------------------------------------------
Final dividend of 200% of Face Value recommended The Board of Directors has recommended a final dividend of 200% of Face Value of each share for the year ended June 30, 2004. During each of the previous 3 quarters of the current financial year, HCL Technologies has declared interim dividends of 100% per quarter. This is in line with the company's policy of considering quarterly dividends, subject to adequacy of profits and in compliance with all applicable legal requirements. Q4 FY 2004 Update on Business Categories SOFTWARE SERVICES Revenues from software services recorded a 5.9% sequential growth. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become from the business increased by 16% on the back of a 210 bps increase in EBITDA margins. This business saw a net addition of 832 people during the quarter, taking the total headcount to 11,360. BPO SERVICES HCL Technologies' BPO revenues registered a QoQ growth of 15%. EBITDA for the business grew by 69.0%. EBITDA margins in BPO expanded from 0.1% in Q1FY'04 to 19.2% in the current quarter. Total manpower witnessed a growth of 611, taking the permanent employees in this business to 3,808. During the quarter a UK-based telecom expense management company has outsourced its back office process involving invoice An itemized statement or written account of goods sent to a purchaser or consignee by a vendor that indicates the quantity and price of each piece of merchandise shipped. A consular invoice is one used in foreign trade. tracking/ entry/verification/template building to HCL Technologies BPO. The division has also won a B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business collections outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. contract from a US-based telecom company. Another contract was signed with a UK-based property valuation portal for back office processes involving automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. property valuation model. The India-based BPO operations have been awarded the prestigious COPC COPC Community Outreach Partnership Center COPC Community-Oriented Primary Care COPC Chemical of Potential Concern COPC Contaminant of Potential Concern COPC Customer Operation Performance Center COPC Constituent of Potential Concern (EPA) certification. HCL BPO's certification spans the widest range of Back and Front Office processes as compared to any other Indian Service Provider. INFRASTRUCTURE SERVICES The infrastructure services business of HCL Technologies recorded a QoQ growth of 0.5% in revenues. The EBITDA margins in this business have almost doubled during the quarter. The EBITDA margins have expanded from 3.1% in Q1FY04 to 16.1% in the current quarter. The company is currently working with 16 global clients, providing them a host of Remote Infrastructure Management services. This business saw a net addition of 120 people during the quarter. GOVERNMENT PRACTICE This business has seen a sequential increase of 66.2% in revenues. A sharp increase in revenues has led to a virtual doubling of EBITDA margins. NEW CLIENTS & PROJECTS Revenue contribution for During the quarter, HCL Technologies the quarter (Clients) added 18 new clients, taking the total -------------------------- tally of active clients to 466. From % The distribution of revenues across the Top 5 30.9 company's clients is indicated in the Top 10 40.8 table. Top 20 52.2 -------------------------- Some significant new engagements during Q4, FY2004, include: --A world leader in security and fire protection services, part of a Fortune 100 global conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. has selected HCL Technologies to partner in the implementation of PeopleSoft Enterprise One. A Fit-Gap Analysis was carried out for 5 of its businesses in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. & Canada and HCL Technologies is currently implementing the PeopleSoft EnterpriseOne package for the customers' locations there. --HCL Technologies is providing services in the storage area networking domain, to a world leader in the delivery of innovative electronics manufacturing services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). . --HCL Technologies is building XP Embedded See Windows XP Embedded. , thin client related technologies for a market leader in tablet PCs (1) A tablet computer environment from Microsoft that is based on an enhanced version of Windows XP. Designed to function more like a portable writing tablet than previous tablet-based computers, it includes handwriting recognition as well as the ability to retain handwritten words . --HCL Technologies is contributing in the areas of ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. Development & verification and in providing reference designs, to a world leader in the supply of high-performance, broadband wireless See wireless broadband. and semiconductor solutions. --HCL Technologies is building a regression regression, in psychology: see defense mechanism. regression In statistics, a process for determining a line or curve that best represents the general trend of a data set. test suite to cover current and future releases of the Computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. Patient Record application suite for a leading healthcare systems company. A new ODC ODC - Open Distributed Computing has been set up for the client. --A global pharmaceutical company involved in developing innovative prescription medicines and new therapies has engaged HCL Technologies to design, develop and implement a web-based system with WYSIWYG (What You See Is What You Get) Pronounced "wiz-ee-wig." It refers to displaying text and graphics on screen the same as they will print on paper or display on a Web page. XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. authoring capability. --The pharmaceutical industry has been innovatively using automation technology to increase sales force productivity. HCL Technologies' engagement consists of extending the client company's homegrown home·grown adj. 1. Raised or grown at home. 2. Originating in or characteristic of a locality: "Rock is homegrown music in the United States, evolved from blues and country and Tin Pan Alley" CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. application to PDAs carried by sales representatives. This will enhance sales productivity on the field by replacing the earlier paper based system with automated real time data for better decision making. The application will be used by close to 2000 reps across Europe. --HCL Technologies is working with a software solutions company that enables pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. to capture, integrate, manage and analyze life-sciences and clinical trial data. HCL Technologies is enhancing the product to make it web - based with drill down functionality. Another feature being worked on is the query builder to enable the search for relevant data items that can be integrated with other tools for analysis. HCL is also doing work on other products in the data warehousing See data warehouse. data warehousing - data warehouse domain. --HCL Technologies has provided the concept designs and developed a satellite radio receiver for a leading electronic manufacturing services provider of PCBs, electronic circuits, custom boards. --A world leading, multiple-media publisher of scientific, technical and health information products and services, has engaged HCL Technologies for maintenance of its e-workflow applications. --A leading Hong Kong-based manufacturer of motors for customers in the automotive, home appliance, power tool, business equipment and personal care industries has outsourced the maintenance and enhancements support of its Project Deliverable Management System to HCL Technologies. --A leading player in the field of Medical Imaging has set up an Offshore Development Center at HCL Technologies for the maintenance of its solution for Computed Radiography radiography: see X ray. , to achieve faster time to market, cost reductions and higher quality. MARKETING INITIATIVES --HCL Technologies was the principal sponsor in the SAE sae abbr (BRIT) (= stamped addressed envelope) → sobre con las propias señas de uno y con sello India National Conference on Automotive Infotronics held at IIT IIT - Integrated Information Technology Chennai, India on 22nd and 23rd August. HCL Technologies also presented a paper on "Telematics-Beyond Mobility" in the conference. --HCL Technologies took part in the Pharma IT summit held in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , USA, in March this year where it launched "CliniCOTS", a one of its kind Clinical Trial Management Solution. CliniCOTS, was well received by the industry and generated significant interest. --HCL Technologies also presented its RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. based drug counterfeit To falsify, deceive, or defraud. A copy or imitation of something that is intended to be taken as authentic and genuine in order to deceive another. A counterfeit coin is one that may pass for a genuine coin and may include a lower denomination coin altered so that it may protection solution for global pharma manufacturers, enabling them to track and protect the movement of authentic drugs from the manufacturing facility to pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major . The third solution unveiled was iCUBE, a Business Intelligence solution for pharma analytics. --HCL Technologies recently demonstrated its Interface A capabilities to International SEMATECH SEMATECH Semiconductor Manufacturing Technology Manufacturing Initiative (ISMI ISMI Institute for the Study of Modern Israel (Emory University) ISMI International Student Mobility Initiative ), the global consortium of leading semiconductor manufacturers dedicated to improving manufacturing productivity. During this live demonstration, HCL Technologies, in partnership with a major semiconductor equipment supplier, showed that HCL Technologies' Interface A offering, HCLT HCLT High Capacity Lumber Tester iDA, is on track to meet SEMI Equipment Data Acquisition (EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. ) standards and provide the industry with a critical e-Manufacturing solution. QUALITY CERTIFICATIONS --HCL Technologies has achieved ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 13485:2003 certification from TUV (Technischer Überwachungs-Verein) Literally "Technical Watch-Over Association." A German certifying body involved with product safety for the European community. Rheinland, for the design of medical devices. This makes HCL Technologies the first Indian company to have the requisite quality systems in place with these systems consistently executing in daily operations. The ISO 13485:2003 (successor to the ISO 13486:1996) is an internationally recognized quality standard, specifically applicable to the design, development and manufacturing of medical devices. This certification will enable HCL Technologies to improve quality and customer responsiveness, besides providing wide-ranging design services to the Medical devices industry. --HCL Technologies has been recommended for AS 9100 Certification, the de-facto standard for Aerospace Industry, by BVQI, UK (Certification body). HCL Technologies' recommendation is accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. to RAB Rab (räb), Ital. Arbe, island (1991 pop. 9,205), 40 sq mi (104 sq km) off Croatia, in the Adriatic Sea. One of the Dalmatian islands, it is a popular seaside resort. Fishing and agriculture are the main occupations. (USA) and UKAS UKAS United Kingdom Accreditation Service UKAS United Kingdom Association of Sonographers (UK). Through this HCL Technologies has become the first Indian aerospace services provider (as per OASIS / IAQG IAQG International Aerospace Quality Group database) to be recommended for AS 9100 Certification with a high Assessment Scoring of 96%. UNIQUE DEVELOPMENTS --HCL Technologies has been named a Global Systems Integrator An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. (GSI GSI - Gensym Standard Interface ) Partner of Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, and is the only system integrator See systems integrator. company to have been awarded the GSI status in the last two years. HCL Technologies has been awarded this status due to the company's continued commitment towards providing best-in-class Microsoft solutions and enabling it's software professionals on the latest Microsoft technologies. The GSI status enables HCL Technologies to build and deliver repeatable and scalable solutions on the Microsoft platform and jointly take them to market. --HCL Technologies Retail & Consumer focused practice is consistently creating re-usable components for developing applications. An effort in this direction has been the formation of RVSG (Retail Vertical Solutions Group) which are mature Frameworks/IP/Components geared to solve current industry issues. Each offering has a dedicated team for delivery and sales sponsors. Currently there are eight solutions:
-- Vertex- Retail Dashboard -- RFID
-- Connect- Loyalty Management System -- SAP IS Retail
-- eStore -- Business Intelligence
-- ePos -- WPOS
--HCL Technologies has also deployed its web based Coming from a Web server. See Web application. project management tool (HCL-PMO) to enable organizations to:
-- Effectively compete for project outsourcing opportunities
-- Collaborate effectively with customers and stake holders
to ensure timely and quality deliverables
-- Automate and execute best practices methodologies for
service delivery.
HUMAN RESOURCES The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. INITIATIVES HCL Technologies registered strong manpower growth during the quarter. The company added 3,682 people (on a gross basis). The net employee addition during the quarter stood at 1,575 of which 832 were added in the software services business and 611 in the BPO business. The total manpower strength of the company (including subsidiaries) at the end of the quarter stood at 16,358, up from 14,783 at the end of the previous quarter. The current annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. attrition rate Noun 1. attrition rate - the rate of shrinkage in size or number rate of attrition rate - a magnitude or frequency relative to a time unit; "they traveled at a rate of 55 miles per hour"; "the rate of change was faster than expected" is 14.1%. DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary Software, the company's JV with Deutsche Bank, has formed an academic collaboration with the internationally recognized Birla Institute of Technology and Science Birla Institute of Technology & Science, Pilani, Rajasthan, India (popularly known as 'BITS Pilani') is one of the oldest leading technology schools of India. In addition to Pilani, BITS has campuses in Dubai, United Arab Emirates and Goa, India, an extension center in Bangalore, , Pilani for a Master's Degree master's degree n. An academic degree conferred by a college or university upon those who complete at least one year of prescribed study beyond the bachelor's degree. Noun 1. in Software Engineering. INFRASTRUCTURE During the current quarter, the company spent $ 30.85 on capital expenditure. The total seat capacity (for organic software business) at the end of the quarter stood at 9,086. HCL Technologies has bought 46 acres of land in Greater Noida  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . to develop an integrated campus. The campus would have a host of facilities including global headquarters, a shared training facility as also a facility for infrastructure management services. Over a period of time, the centre would house anywhere between 7000-8000 people. In the first phase, 2000 seats are being planned.
Q4 FY 2004 Results
KEY OPERATIONAL METRICS
-----------------------
ORGANIC SOFTWARE
REVENUE BREAKUP ($'000)
----------------------
Offshore Centric 67,352
Onsite 34,235
BILLING RATES METRICS
----------------------
Efforts billed (manmonths)
Offshore Centric 15,240
Onsite 3,531
Subcontracted Efforts 241
Capacity Utilisation (%)
Offshore Centric 75.6
Onsite 93.5
Bill Rates ($'000/Manmonth)
Offshore Centric 4.42
Onsite 9.69
------------------------------------
CONSOLIDATED
REVENUE BREAK UP (%)
--------------------
Location
Offshore Centric 80
Onsite 20
Geography
US 58.6
Europe 23.4
Asia Pacific 18.0
Service Offerings
Technology Development
Services 24.4
Software Product Engg
Services 16.6
Applications Services 37.9
Infrastructure Services 9.5
BPO Services 11.6
Repeat Business (%) 83%
CLIENT CONCENTRATION
--------------------
No. of Million $ Clients 105
No. of 5 Million $ Clients 23
No. of Fortune 500 clients 56
% Contribution from:
Top 5 clients 30.9
Top 10 clients 40.8
Top 20 clients 52.2
------------------------------------
MANPOWER DETAILS
-----------------
CONSOLIDATED As on
----------------------
Jun 30 '04 Mar 31 '04
---------- ----------
TOTAL 16,358 14,783
Software Services 11,360 10,528
Organic 9,057 8,512
Technical 8,137 7,648
Offshore 6,962 6,477
Onsite 1,175 1,171
Support 920 864
Sales and Marketing 110 110
Others 810 754
Offshore 711 663
Onsite 209 201
Non-organic 2,303 2,016
Technical 2,126 1,859
Support 177 157
Infrastructure services 1,044 924
Organic 1,044 924
Technical 613 605
Support 431 319
BPO 3,808 3,197
Organic 3,446 2,878
Non-organic 362 319
Government 146 134
Non-organic 146 134
Technical 120 110
Support 26 24
Annualised Attrition 14.1% 14.57%
(greater than 1 yr.)
Q4 FY 2004 Results
(Fourth Quarter and Annual Results Analysis based on the audited US
GAAP financial results for FY 2003-04)
Consolidated Income Statement (as per US GAAP) in US$million
Quarterly Details Yearly Details
(unaudited)
JFM'04 AMJ'04 QoQ FY'03 FY'04 YoY
------- ------- ---- ------- ------- ----
Gross Revenues 148.62 160.48 8% 415.85 567.86 37%
Direct Costs 96.39 100.18 255.70 362.64
Gross Profits 52.23 60.30 15% 160.15 205.22 28%
SG&A 22.54 23.11 81.46 90.22
EBIDTA 29.69 37.19 25% 78.69 115.00 46%
Depreciation
& Amortisation 6.15 7.26 18.96 25.14
EBIT 23.54 29.93 27% 59.73 89.86 50%
Other Income, Net 9.87 24.36 10.74 106.50
EBT 33.41 54.29 62% 70.47 196.36 179%
Provision For Tax 1.77 0.76 6.66 8.85
EAT 31.65 53.53 69% 63.81 187.52 194%
Share from
Equity Investments (0.16) (4.92) 1.34 (2.06)
Share of (income)/loss of
minority shareholders (3.41) (3.15) (6.75) (13.35)
Net Income 28.08 45.46 62% 58.40 172.10 195%
Stock based sales
incentive (Non Cash) 0.81 (0.09) (0.36) (0.15)
Net Income after
non cash charge 28.89 45.37 57% 58.04 171.95 196%
Key ratios
Q3FY'04 Q4FY'04 FY'03 FY'04
----------------------------------- --------- -------- ----- -----
Gross Margin 35.1% 37.6% 38.5% 36.1%
Opex/Gross revenue 15.2% 14.4% 19.6% 15.9%
EBIDTA Margin 20.0% 23.2% 18.9% 20.3%
Net income/Gross revenue 19.4% 28.3% 14.0% 30.3%
----------------------------------- --------- -------- ----- -----
Notes:
1. In January 2003, the company acquired the software division of HCL
Infosystems Limited (a company under the same common control as
HCL Technologies Ltd). As required by SFAS 141 'Business
Combination', the company has consolidated the results of the
operations of the acquired business in its consolidated financial
statements with effect from May 1, 2002 on which both, the Company
and HCL Infosystems, became companies under common control.
2. Other income includes transaction gains/(loss) due to exchange
rate movements.
3. Other income for the current quarter includes a sum of $ 8.3 mn
relating to the adjustment of other income from FY'03 to FY'04.
4. In the current quarter, a deferred tax asset of $ 1.5 mn has been
created.
5. For the quarter, a sum of $ 5.9 mn has been reclassified from
'share from equity investments' to 'other income' relating to the
divestment of stake in HPS.
Q4 FY 2004 Results
Consolidated Balance Sheet (as per US GAAP) In US$ 000's
As On
-------------------------------------
June 30, '03 March 31 '04 June 30 '04
-------------------------------- ------------ ------------ -----------
ASSETS
a. Cash and cash equivalents 32,362 30,656 49,020
b. Accounts receivable, net 66,406 108,359 107,086
c. Treasury Investments 314,913 456,503 419,637
d. Other current assets 46,372 61,312 50,851
A. Total current assets (a+b+c+d) 460,053 656,830 626,594
B. Property and equipment, net 63,441 83,417 102,869
C. Intangible assets, net 46,692 49,906 59,858
D. Investments in Venture Funds
/ Equity investees 52,718 20,375 22,506
E. Other Assets 10,999 9,574 12,788
Total assets (A+B+C+D+E) 633,903 820,101 824,615
LIABILITIES AND STOCKHOLDERS' EQUITY
e. Total current liabilities 85,258 120,444 124,892
f. Long-term debt 10,000 30,000 30,000
g. Other liabilities 4,287 4,700 4,277
E. Total liabilities (e+f+g) 99,544 155,144 159,168
F. Minority Interest 16,447 22,890 24,688
G. Total Stockholders equity 517,912 642,067 640,759
Total liabilities and
stockholders equity (E+F+G) 633,903 820,101 824,615
Note: Unrealized gains on Treasury Investments as of June 30, 2004
stood at $ 9.94 mn.
Q4 FY 2004 Results
Revenue breakup between various business categories in US $million
Software Services BPO Services
------------------- --------------------
Q3FY'04 Q4FY'04 QoQ Q3FY'04 Q4FY'04 QoQ
---------------------------- ------- ------- --- ------- ------- ----
Gross Revenues 119.88 126.93 6% 16.27 18.69 15%
Direct Costs 76.73 79.33 11.70 12.68
Gross Profits 43.15 47.59 10% 4.57 6.01 32%
SG & A 17.23 17.45 2.44 2.42
EBIDTA 25.92 30.14 16% 2.13 3.59 69%
Depreciation & Amortisation 3.74 4.13 1.75 1.93
EBIT 22.18 26.01 17% 0.38 1.66 337%
Interest & Other Income, net 9.33 25.43 0.47 (0.90)
EBT 31.51 51.44 63% 0.84 0.76 -10%
Provision for Tax 1.49 2.33 0.14 (1.29)
EAT 30.02 49.11 64% 0.71 2.05 190%
---------------------------- ------- ------- --- ------- ------- ----
Infrastructure
Services Govt. Practice
-------------------- --------------------
Q3FY'04 Q4FY'04 QoQ Q3FY'04 Q4FY'04 QoQ
--------------------------- ------- ------- ---- ------- ------- ----
Gross Revenues 15.23 15.30 0.5% 1.99 3.31 66%
Direct Costs 11.23 9.86 1.48 2.05
Gross Profits 4.00 5.44 36% 0.51 1.26 147%
SG & A 2.66 2.98 0.20 0.26
EBIDTA 1.34 2.46 84% 0.31 1.00 223%
Depreciation & Amortisation 0.55 1.01 0.11 0.19
EBIT 0.79 1.45 84% 0.20 0.82 316%
Interest & Other Income,
net 0.09 (0.22) (0.01) 0.06
EBT 0.87 1.23 40% 0.19 0.87 367%
Provision for Tax 0.13 (0.35) 0.00 0.08
EAT 0.74 1.58 113% 0.19 0.79 325%
--------------------------- ------- ------- ---- ------- ------- ----
Inter Co Adjustment
---------------------------
Q3FY'04 Q4FY'04
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Gross Revenues (4.7) (3.7)
Direct Costs (4.7) (3.7)
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Key ratios
Software Infrastructure
Services BPO Services Services
--------------- --------------- ---------------
Q3FY'04 Q4FY'04 Q3FY'04 Q4FY'04 Q3FY'04 Q4FY'04
--------------------- ------- ------- ------- ------- ------- -------
Gross Margin 36.0% 37.5% 28.1% 32.2% 26.3% 35.5%
Opex/Gross revenue 14.4% 13.7% 15.0% 13.0% 17.5% 19.5%
EBIDTA Margin 21.6% 23.7% 13.1% 19.2% 8.8% 16.1%
Net income/Gross
revenue 25.0% 38.7% 4.3% 11.0% 4.9% 10.3%
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Govt. Practice
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Q3FY'04 Q4FY'04
----------------------------- ------------ -----------
Gross Margin 25.6% 38.1%
Opex/Gross revenue 10.1% 7.8%
EBIDTA Margin 15.5% 30.3%
Net income/Gross revenue 9.4% 24.0%
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ABOUT HCL TECHNOLOGIES HCL Technologies is one of India's leading global IT services and product engineering companies, providing value-added, software-led IT solutions and services to large and medium-scale organisations. Founded in 1991, HCL Technologies focuses on technology as well as R&D outsourcing, with the objective of working with clients in areas at the core of their business. HCL Technologies delivers these services through an extensive offshore software development infrastructure and a vast global marketing network that enables scalable, flexible and cost-effective delivery. The company's well defined business strategy has enabled it to build domain expertise across a host of chosen verticals including among others banking, insurance, Life Sciences, aerospace, automotives, telecom, semi-conductors and retail. As of 30 June 2004, HCL Technologies Limited, along with its subsidiaries, had 16,358 employees. The HCL Technologies team today has operations spanning 26 locations in 14 countries covering over 80% of the world IT market. Together with its knowledge of embedded systems Embedded systems Computer systems that cannot be programmed by the user because they are preprogrammed for a specific task and are buried within the equipment they serve. , core technologies and application development expertise, HCL Technologies is positioned, as a composite solutions provider equipped to cater to the entire gamut See color gamut. gamut - The gamut of a monitor is the set of colours it can display. There are some colours which can't be made up of a mixture of red, green and blue phosphor emissions and so can't be displayed by any monitor. of IT needs. For more information, visit HCL Technologies at www.hcltech.com FORWARD LOOKING STATEMENTS Certain statements in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. , our ability to manage our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , reduced demand for technology in our key focus areas, disruptions in telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies/ entities in which we have made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. |
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