HCLTech slashes constant currency revenue growth guidance for FY25 to 3-5%

HCLTech CEO C Vijayakumar

India’s third largest IT services company HCLTech has reduced its full year revenue growth guidance in constant currency terms to 3-5 percent for the fiscal year 2025, citing continued macroeconomic uncertainties.

HCLTech had started previous fiscal year, FY24, with a full-year revenue growth guidance of 6-8 percent at a company level, which was later reduced to 5-5.5 percent by the third quarter.

Commenting on the reduction of growth guidance at the Q4 earning conference, C Vijayakumar, CEO and MD, HCLTech said, “We continue to remain optimistic of the opportunities ahead of us. From Q4 to as we get into FY25, some of the large deals we won will move into a global delivery model that will have some reduction in revenue. We believe we still have a lot of strong momentum in a lot of areas. When all of that is also factored in, with macro environment our assumption the environment will continue to be similar to FY24.”

“Taking all of that into consideration we have given a guidance of 3-5% growth. In FY23 we had the highest growth in our services business. This year again we have an industry leading growth compared to others. I think we have a balanced portfolio that will deliver in any kind of economic scenario. We think we will continue to lead the market in terms of growth,” he added.

Vijayakumar believes FY25 will be another year of consolidation from both demand and supply side.

HCLTech reported a strong order book of $2.29 billion for the fourth quarter ended March 31, which included 21 new large deals, 13 in services and eight in software.

For the full year FY24, the order book stood at $9.75 billion, a 10 percent jump YoY.

Vertical wise, financial services grew 12.1 percent YoY CC growth, manufacturing grew 9.8 percent YoY CC growth, life sciences and healthcare grew 5.4 percent YoY. Technology and services declined 8.6 percent YoY.

Contrary to industry wide trend, Telecom saw the highest ever performance in HCLTech’s history in FY24, also partially driven by the $2.1 billion Verizon deal. Telecommunications, Media, Publishing & Entertainment grew 6.5 percent YoY in CC.