Read the quarter in context.
A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹28,499 Cr
verified against source
Revenue YoY
5%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
HCLTech reported FY24 revenue growth of 5% YoY in constant currency, with services growing 5.4% and software at 2.3%. Operating margins came in at 18.2%, within the guided range. The company saw strong deal wins of $9.76 billion, up 10.2% YoY, and free cash flow grew 27.7%. However, FY25 guidance of 3-5% revenue growth disappointed, partly due to a -2% Q1 impact from offshoring in a large financial services deal and the State Street BPO JV divestiture. Management expects a back-half-weighted year with continued discretionary spending pressure. Key risk: GenAI spending may crowd out traditional IT budgets, limiting near-term growth.
Colored figures show movement against the previous available record.
Guidance to track
- HCLTech guides for constant currency revenue growth of 3-5% for FY25, with Q1 expected to decline ~2% sequentially due to offshoring impact in a large FS deal and annual productivity passbacks.
- Operating margin guidance for FY25 is maintained at 18-19%, consistent with FY24 actuals, with no specific timeline to reach the aspirational 20% level.
- Management expects Q1 FY25 revenue to decline approximately 2% sequentially, driven by offshoring in a large deal and annual productivity passbacks, excluding State Street impact.
Risks flagged
- Management noted that GenAI spending is coming at the cost of other IT budget areas, potentially limiting overall services growth.
- Analysts questioned the lack of discretionary recovery baked into guidance; management confirmed they assumed a similar environment to FY24, with no rebound in discretionary projects.
- The offshoring of a large financial services deal will cause a ~2% sequential revenue decline in Q1, and similar impacts may occur with other mega deals like Verizon later in the year.
Key quotes
- Our services business grew 5.4% year-on-year in constant currency, and I think that's the fastest growth in the industry.
- The entire growth came on the back of healthy growth across segments, different industries and geographies, in services business as well as software business.
- I think FY25 will be a year of consolidation, both on the demand and supply side.
Research modules