IT major HCL Technologies reported its Q1 numbers. Revenue growth was subdued on the rupee as well as the dollar metric, coming in below what the street was expecting.

Kritika Saxena caught up with C Vijayakumar, CEO and Anil Chanana

CFO of HCL Tech and asked them what their strategy would be going forward in terms of the growth and also the increase in market share that the company is witnessing.

Vijayakumar said that we are clear on couple of big bets that we have taken and it’s well-articulated in our Mode 1-2-3 strategy.

He further said that we will accelerate investments in Mode 2 and Mode 3 going ahead.

Chanana said that we believe 9.5-11.5 percent growth in constant currency is comfortable.

“So far as margins are concerned, it is the weaker rupee allowing us to invest in our business,” he said.

Talking about order flow, Vijayakumar said, “Coming quarters we expect incrementally better outlook based on strong orderbook and the bookings that we have had.”

“BFSI, we were generally positive. Even last year I was quite positive and we delivered good growth in financial services last year. The way I look at it now, the pipeline looks better than what it was last year and even better than last quarter,” he added.

According to him, the overall outlook on infrastructure business from a long- term perspective is good.

On growth front, Chanana said, “We have seen an acceleration in the organic part of the business. So the deal wins, which we had in October to December quarter, will be converting into revenues and largest deal wins which happened in this quarter will translate into revenues six months from now. So it gives us visibility not only for FY19 but even beyond.”

Vijayakumar further mentioned that we see more large deals in the pipeline than we saw last year.

C Vijayakumar:

- Believe coming quarters will be good for infra business

- Nature of infra business is volatile; will not see linear QoQ growth

- Return of growth in infra from a YoY perspective will continue to improve

- Expect India SI business to further reduce in coming quarters

- Impact of India SI business decline to be lesser over H2FY19

- Seeing a clear change in the company's pipeline

First Published:Jul 28, 2018 3:25 PM IST