Focused on investing in enhancing Mode 2, Mode 3 capabilities: HCL Tech

HCL Technologies reported a steady fourth quarter. Revenues grew by 4.1 percent in dollar terms and margins were higher than peers.

The company reported 4.1 percent QoQ growth in dollar revenue to $1817 million for the quarter ended March 31, higher than a CNBC-TV18 poll of USD 1815 million. The dollar revenue grew by 14.5 percent on a YoY basis.

In an interview to CNBC-TV18, C Vijayakumar, CEO and Anil Chanana, CFO of HCL Technologies spoke about the results and gave their outlook for the company.

Below is the verbatim transcript of the interview.

Q: For FY18 you have guided at 10.5-12.5 percent on constant currency basis and 9.9-11.9 percent on dollar term basis. What are the expectations in terms of the breakup of organic and inorganic revenue from FY18 figure that you are looking at?

Vijayakumar: 10.5-12.5 is the overall growth and every time when we did an acquisition we have said what the potential revenue impact from an annualised basis is. However, I do not want to call out exactly what is organic and inorganic because once you integrate the acquisition, it becomes difficult to call out specifically because a lot of services are sold to existing customers, we may rationalise the portfolio a bit. So it is difficult to keep a track and report these numbers.

Q: Is it fair to say that 10.5-12.5 is based on the visibility that you have seen in terms of organic growth?

Vijayakumar: Absolutely. 10.5 to 12.5 is based on the order book and the pipeline and what we expect and as we have indicated in capital allocation policy and how we want to spend the money, we have been investing by acquiring companies and partnerships. So some of that will continue and it may add a bit of growth.

Q: If there were to be more acquisitions in the next one year, could I say that you will be able to cross 12.5 percent mark?

Vijayakumar: It is too early. Acquisition, target, acquiring, integrating, converting to revenues, there is a pretty long cycle.

Q: Are there deals that you are looking at right now?

Vijayakumar: Absolutely. We continue to be very focused on investing in enhancing our Mode 2 capabilities and Mode 3, so you will see us very active like you have seen in the last year and that is one element of our growth strategy.

For entire interview, watch accompanying video.