HCL's deal pipeline nears all-time high, growth across verticals seen this time: CEO C Vijayakumar

After delivering Q3 results that were aligned with market expectations, HCLTech CEO, C Vijayakumar, said that the company's deal pipeline was nearing its all-time high, albeit with a twist this time. Unlike the previous peak, which was driven by a $2.1 billion mega-deal with Verizon Business, the surge in the company's deal pipeline this time is riding on the back of broad-based growth across verticals.

Vijayakumar also revealed that order books for both the Americas and Europe regions stood at an all-time high. "We saw strong growth in technology, retail, and consumer packaged goods services verticals," he said.

The broad-based growth across verticals is being fuelled by an improvement in discretionary demand, as highlighted by HCLTech's management in the post-earnings call. "Large deals are being broken into smaller deals. Deal cycles have shortened, and there is more demand for small deals," Vijayakumar said during the post-earnings call. "That is the reason why our TCV (Total Contract Value) has not changed materially, but ACV (Annual Contract Value) has," he added.

Also Read | HCL Tech Q3 results: Net profit rises 5.5% to Rs 4,591 crore, Rs 18 dividend declared