Business Performance:
Responded to uncertain situation with agility and flexibility.
Delivered good growth with control over profitability.
Annual revenue grew 5% in constant currency year-on-year.
Services business grew 5.4% year-on-year in constant currency.
Software business grew 2.3% year-on-year in constant currency.
Operating margins stood at 18.2%, within guided range.
Free cash flow growth of 27.7% year-on-year.
Healthy growth across segments, industries, and geographies.
Organizational Changes:
Integrated engineering and R&D services sales with IT and business services sales.
Aligned with increasing demand for strategic partners with comprehensive capabilities.
Three leaders with role changes announced for FY’25.
Focus on accelerating growth for engineering business and IT services segment.
Financial Performance:
Q4 revenue at $3.43 billion, up 6% in constant currency year-on-year.
Services revenue at $3.1 billion, up 6.7% year-on-year in constant currency.
IT and business services revenue at $2.55 billion, up 6.7% year-on-year in constant currency.
ER&D revenue up 6.4% year-on-year in constant currency.
EBIT at $603 million, down 48 basis points year-on-year.
Net income at $480 million, flat year-on-year.
Operating cash flow at $2.7 billion, up 22% year-on-year.
Free cash flow at $2.6 billion, up 28% year-on-year.
Client Wins and Partnerships:
Secured deals with Europe-based manufacturing company, Japan-based global medical technology major, US-based manufacturing company, and US-based advertising and marketing technology service provider.
Partnership with State Bank of India for MarTech platform.
Launch of HCLTech AI Force platform for generative AI and automation.
Industry Trends:
Enterprises focusing on AI, engineering, and FinOps.
Moderate to healthy enterprise IT spending expected.
AI-related spending impacting IT budgets.
Growth in engineering and R&D spend outsourcing globally.
Integration of IT and engineering capabilities driving new deal momentum.
Guidance for FY’25:
Revenue growth guided at 3% to 5% in constant currency.
Operating margin guidance at 18% to 19% range.
Expecting year of consolidation on demand and supply side.
Clients expected to invest in AI and other emerging technologies.
Vendor consolidation opportunity to benefit scalable providers.
Challenges and Opportunities:
Cautious optimism amidst enterprise IT spending.
Impact of Generative AI on discretionary spending.
Focus on efficiency and differentiation in software development.
Expectation of continued growth in software and services segments.
Strong pipeline and bookings expected to drive growth.
Conclusion:
Optimistic outlook for FY’25 despite challenges.
Focus on efficiency, differentiation, and client partnerships.
Strong financial performance and strategic initiatives driving growth.
Positioning as a leader in the industry with a balanced portfolio.
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