HCL Tech CEO C Vijayakumar: HCL Tech CEO C Vijayakumar said that the company’s margins have been 19 per cent, which is within our guided range of 19-21 per cent. Overall, the company will continue to control margins for the next two-three quarters. In an interview to Moneycontrol after the December quarter results were released, he spoke on various issues like growth outlook, margins etc.
Support from all services, verticals
On the recovery, he said the results were fully supported by IT services or engineering services, products and platforms, across all verticals or markets. This was the reason for the impressive results of HCL Tech. Vijayakumar said that there were many big deals in terms of services and products. HCL Tech added over 10,000 people during the quarter.
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22 thousand recruitments done in the financial year
He said the company’s margin stood at 19 per cent, which was flat compared to the previous quarter. IT Services margins declined, while Products and Platforms margins increased. HCL Tech CEO said the main reason for the shortfall in IT services was investment, which persists in freshers. The company made 22 thousand new recruitments in the financial year 22, some of which are being trained. Also, due to the high cost of talent, cost remains under pressure. Although the outlook is good.
good organic growth
To a question on whether it is lagging behind Wipro and Infosys in this respect despite 14 per cent growth in revenue, Vijayakumar said, “I think the momentum is coming back.” In the last quarter, our services business grew by 5.2 per cent and in the December quarter it grew by 5.3 per cent, one of the highest in the industry in terms of organic growth. He said that the annual growth will take some time, but the quarter-wise growth in the last two quarters has been good.
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increased salary of half the employees
The CEO of HCL Tech said that the product business of the company is completely different. The company always looks at services and products separately. Organic is an important aspect of the company’s growth.
He said that during the next two-three quarters, the company will continue to add new talent and about half the employees’ salaries have been increased. This is the second hike in a calendar year. However, this has put pressure on margins. He expressed confidence that the company will register improvement in this.
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