Leading IT services company HCL Technologies (HCL) announced today that it is issuing a special one-time bond worth ₹Rs 700 million to employees around the world, in recognition of their recent milestone of crossing the $ 10 billion mark in revenue by 2020. All employees with one year of service or more will receive a bonus, the equivalent of ten days of salary.
As of December 31, 2020, HCL’s full-time employee headcount was 159,682. HCL Tech’s revenue had passed the $ 10 billion milestone in calendar year 2020, generating 3.6% year-on-year growth in constant currency.
Reaching this historic milestone, just twenty years since HCL Technologies’ IPO, is a testament to the passionate efforts and consistent accomplishments of its employees, HCL Tech said in a statement.
“Our employees are our most valuable asset. Despite a relentless pandemic, each and every member of our HCL family has demonstrated immense commitment and passion, contributing to the growth of the organization, “said Apparao VV, Director of Human Resources for HCL Technologies.
“The $ 10 billion revenue milestone is a testament to our remarkable resilience as an organization and the entrepreneurial spirit of our more than 159,000 employees. With this gesture, we want to sincerely express our gratitude to our employees and their families for all their support.” .
The special bonus will be paid to employees in February 2021, amounting to approximately $ 90 million plus payroll taxes in some countries, the impact of which is excluded from the fiscal year 21 EBIT guidance provided by the company last month, HCL Tech said.
In the last quarter of December, HCL Tech’s revenue increased to ₹Rs 19,302 crore, up 3.8% qoq and 6.4% yoy, while earnings ₹Rs 3,982 crore, an increase of 26.7% qoq and an increase of 31.1% qo
Revenues are expected to grow 2% to 3% qoq in constant currency for the fourth quarter of fiscal 21, including the contribution from DWS. The margin is expected to be between 21.0% and 21.5% for fiscal year 21.
HCL Tech shares are up 60% in the last year and many analysts remain bullish on the stock.
“We continue to maintain our positive outlook on the IT industry. The bar is raised to positive uncharted territory with the classic combination of (1) constructive market environment (cloudification, accelerating business growth), (2) built-in and growing competitive advantage, and (3) superior execution (with an upside risk to operational performance), “Apurva Prasad, institutional research analyst, HDFC Securities, and Amit Chandra, institutional research analyst, HDFC Securities, said in a note.
“The competitive advantage of India’s IT sector continues to improve (50% incremental market share within leading global companies) and the pandemic has further unleashed the sectoral tailwinds of multi-year accelerated digitization / cloudification The Tier 1 IT incremental revenue addition doubles compared to the prior period addition, translating into a 12% CAGR on USD revenue for fiscal year 21-23E, “they said.
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