1. Technology that touches Life

2.  HCL was founded by Shiv Nadar in 1976, at a time when India
had a total of just 250 computers.
 HCL developed the first indigenous micro-computer in 1978.
 HCL developed a fine grained multi-processor UNIX in 1988.
 HCL Technologies was spun off as the information technology
and software services arm of the enterprise, with listing in 1999.
 HCL Enterprise was a $6.2 billion global org with 90,000
professionals operating from 31 countries as on June 2012
 HCL now has 85,335 on 30th September 2012
 Geographies : USA, Europe, Asia Pacific and Japan
 Consolidated revenue: US$ 4.3 billion (Rs. 22,417 crores), as
on 30th September 2012 for HCL Technologies Limited

3.  Of more than 3,000 technology companies in the Bloomberg
database, there are only seven with revenue of more
than $2.5 billion, a market capitalization of more than $5
billion, and a compounded annual growth rate greater than
25 per cent during the past five years.
 HCL’s success factors are innovative thinking of empowered
employees.
 The basic values of HCL Technology are :Value
Centricity, Trust Through Transparency , Employees First
, Customers Second: Turning Conventional Management
Upside Down.
 Everyone whatever the job, is an employee - one who can
create value for customers – or the world – if given the
opportunity to do so.

4. Vision:
“To be the technology partner of choice for forward looking
customers by collaboratively transforming technology into
business advantage.“
Mission:
"We will be the employer of choice and the partner of choice by
focusing on our stated values of Employees First, Trust,
Transparency, Flexibility and Value Centricity."

6. The various departments in HCL are:
• Sales Department
• Marketing Department
• HR Department
• Admin Department
• Software Development Department
• Research and Development
• Finance and Accounting Department
• Training Department

7. Strengths:
 Wide range of services
 Global coverage
 Strong employee base
 Support sales activities
 Up to date regarding the market
 Associations and Partnership with leading brands
Weakness:
 Lost projects in continuation
 HCL’s dependence on mature markets

8. April 2010 April 2011 April 2012
Q3 Revenues(US $) US$685 MN US$915Mn US$ 1,048 mn
Profit on Q3 revenues Up 21.4 % YoY Up 33.5% YoY up 14.6% YoY
Net Income(US $) US$77MN $ 100 mn/quarter milestone US$ 121 mn
to reach $ 103 mn
Profit on net income 78.1% YoY up 35.0% YoY up 17.1% YoY
Stock Price:
BSE:616.15 NSE:615.85
Volume:25,979 Volume:722,168

9.  HCL Technologies first quarter net profit rose 78% YOY
(4% sequentially) to Rs 885 crore, sending its shares to
a 52-week high as the India's fourth largest software
services provider yet again topped street expectations.
 Revenue in July-September quarter, was a little lower-
than-expected Rs 6,091 crore, up 31% from a year ago
(3% quarter-on-quarter).
 Analysts on average had expected HCL Tech to report a
net profit of Rs 788 crore on revenue of Rs 6,150 crore,
according to a CNBC-TV18 poll.
 Its earnings before interest, taxes, depreciation and
amortization were up 70% YoY to Rs 1,351 crore and
EBITDA margin was at 22.2% in the first quarter,
compared with 22% in Q4 and 17.1% in the year ago
first quarter.

10.  HCL Tech had a foreign exchange loss of Rs 61 crore in July-
September, compared with a loss of Rs 18 crore a year ago.

In US dollar terms, HCL Tech's net income rose 51% year-on-year
(4% sequentially) to USD 162 million and revenue was up 11% (3%
quarter-on-quarter) to USD 1.1 billion.

HCL Tech's strong earnings growth came on the back of several
new deal wins and growth across its key geographies of US and
Europe, which grew 18% and 17% respectively in US dollar terms
on a LTM (last twelve months) basis.

It won 12 multi-year multi-million dollar deals during the
quarter, across manufacturing, financial services and consumer
services verticals.

11. Jun’12 Jun’11 Jun’10 Jun’09 Jun’08
Earnings Per
28.13 17.4 15.57 14.88 11.72
Share
95.25 85.06 72.69 52.04 48.22
Book Value
Jun '12 Jun '11 Jun '10 Jun '09 Jun '08
Investment Valuation Ratios
Face Value 2 2 2 2 2
Dividend Per Share 12 7.5 4 7 9
Operating Profit Per Share (Rs) 36.21 23.11 20.83 20.73 18.41
Net Operating Profit Per Share (Rs) 128.48 98.66 74.82 69.75 69.26
Free Reserves Per Share (Rs) -- 71.21 64.74 56.44 49.1
Bonus in Equity Capital 58.91 59.3 60.17 60.93 61.29

12. Profitability Ratios
Jun '12 Jun '11 Jun '10 Jun '09 Jun '08
Operating Profit Margin(%) 28.18 23.42 27.83 29.72 26.58
Profit Before Interest And Tax Margin(%) 23.42 18.68 21.77 23.53 21.56
Gross Profit Margin(%) 24.21 19.13 22.43 24.33 21.86
Cash Profit Margin(%) 25.01 22.42 26.12 27.23 25.01
Adjusted Cash Margin(%) 25.01 22.42 26.12 27.23 25.01
Net Profit Margin(%) 21.18 17.22 20.18 20.63 16.68
Adjusted Net Profit Margin(%) 21.18 17.22 20.18 20.63 16.68
Return On Capital Employed(%) 33.64 21.2 20.44 32.39 33.08
Return On Net Worth(%) 29.53 20.45 21.41 28.59 24.29
Adjusted Return on Net Worth(%) 29.53 21.64 22.16 30.52 29.64
Return on Assets Excluding Revaluations 95.25 85.06 72.69 52.04 48.22
Return on Assets Including Revaluations 95.25 85.06 72.69 52.04 48.22
Return on Long Term Funds(%) 34.47 21.21 21.71 36.88 33.1

13. Jun '12 Jun '11 Jun '10 Jun '09 Jun '08
Liquidity And Solvency Ratios
Current Ratio 1.38 2.09 1.92 1.5 1.12
Quick Ratio 1.42 1.97 2.19 1.71 1.06
Debt Equity Ratio 0.11 0.18 0.28 0.15 0.01
Long Term Debt Equity Ratio 0.08 0.18 0.21 0.01 0.01
Debt Coverage Ratios
Interest Cover 25.27 14.98 13.24 51.14 62.07
Total Debt to Owners Fund 0.11 0.18 0.28 0.15 0.01
Financial Charges Coverage Ratio 28.9 17.29 15.48 43.8 51.74
Financial Charges Coverage Ratio
Post Tax 24.68 15.69 14.13 36.34 41.05
Management Efficiency Ratios
Inventory Turnover Ratio 89.08 59.62 1,131.13 53.73 --
Debtors Turnover Ratio 4.88 3.63 2.84 3.79 5.45
Investments Turnover Ratio 89.08 59.62 1,131.13 53.73 --
Fixed Assets Turnover Ratio 2.88 2.73 2.56 2.73 --
Total Assets Turnover Ratio 1.29 1.05 0.84 1.25 1.51
Asset Turnover Ratio 1.26 2.73 2.56 2.73 3.27
Average Raw Material Holding -- -- -- -- --
Average Finished Goods Held -- 7.35 0.4 8.74 --
Number of Days In Working Capital 74.54 125.65 189.9 166.69 23.28

14. Profit & Loss Account Ratios Jun '12 Jun '11 Jun '10 Jun '09 Jun '08
Material Cost Composition 2.02 4.04 0.05 -- --
Imported Composition of Raw Materials
Consumed -- -- -- -- --
Selling Distribution Cost Composition -- 0.34 0.39 0.31 0.64
Expenses as Composition of Total Sales 94.12 74.42 97.82 97.8 98.49
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 49.47 49.97 29.86 55.08 89.7
Dividend Payout Ratio Cash Profit 41.89 40.2 23.71 43.97 70.13
Earning Retention Ratio 50.53 52.78 71.14 48.4 26.48
Cash Earning Retention Ratio 58.11 61.6 76.93 58.27 40.16
AdjustedCash Flow Times 0.3 0.66 1.02 0.39 0.02
References:
www.hcltech.com
www.moneycontrol.com
www.timesofindia.com

15. Any questions?