HCL Technologies will revenue will grow by 12-14% in FY23; margin to stay at 18-20%: Prateek Aggarwal, CFO

Prateek Aggarwal, Chief Financial Officer, HCL Technologies, talks about Q4FY22 numbers and expected growth and margin guidance for FY23 during a candid chat with Swati Khandelwal, Zee Business.

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Edited Excerpts:

Q: How has the Q4FY22 been for the company in terms of growth, deal wins and most importantly attrition?

A: On all the three fronts, I think, it has been a good quarter and year as a whole. For the last three quarters, our growth in the services business has been more than 5% CQGR cumulative for consecutive three quarters. I think, this is the maximum growth across the industry. On the other hand, attrition also seems to be recovering a bit. Although on the last 12-month-basis, attrition has been more in the previous quarter. But for the quarter, the attrition of just this quarter has reduced a bit compared to the previous quarter. So, expectations are that as it has balanced a bit, it may decline in the coming future. Our job is the reduce it and that is what we are trying. Hopefully, we may succeed in our trial.

Q: Your constant currency growth is down to 1.1% and margins were at 18.2%. What is the reason for low CC growth and what is your outlook on margins?

A: As I have said, the services business, which is almost 90% has grown well and has been good for the last three quarters. But our revenue in the product and platforms business was more than $400 million in the previous quarter and compared to it, our revenue has been less in this quarter. It is a seasonal weakness. Generally, the last quarter was good but there is slight volatility and seasonality in this business due to which the total growth at 1.1%. But growth for the future, we have given a growth guidance of 12-14% for the new fiscal (FY23) that has started from April 1, 2022. Last year, our total growth at the company level stood at 12.7%. So, we are confident that we will be able to grow by 12-14% next year, which is a good sign. As far as the margin is concerned, our margin in this quarter (Q4FY22) stood at 17.9% and we have given margin guidance of 18-20% for FY23.

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