HCL Technologies announces results: Shiv Nadar’s daughter Roshni Nadar Malhotra to succeed him as chairperson

HCL Technologies has announced results and the company has reported a revenue growth of 1% YoY growth in constant currency came along with a significant expansion of margins on YoY basis - EBITDA at 25.6% and EBIT at 20.5% an increase of 490 bps and 344 bps, respectively.

C Vijayakumar, president and CEO, HCL Technologies Ltd. said: “The adverse conditions during this quarter had an anticipated negative impact on our revenue. I am happy to report that the resilience of our operating model helped us deliver stellar operating margins and cashflows. We had healthy bookings enabled by 11 new transformational deal wins. We also renewed several large deals during the quarter.”

Gross Cash stands at US $ 1,952 million and Net Cash at US $ 1,329 million at the end of 30 June 2020, after paying-off the second and final tranche of acquisition related pay out of US $ 0.8 billion.

“We had very solid performance from HCL Software in Q1 FY’21 quarter, which also marks the successful completion of one full year since the closing of the IBM select products acquisition,” said a statement from the company.

Another announcement that was made was that Shiv Nadar would be stepping down from the position of the chairman of HCL Technologies. The Board of Directors has now appointed his daughter Roshni Nadar Malhotra, non-executive director as the chairperson of the Board of Directors and the company with effect from 17 July 2020, in place of Shiv Nadar

Shiv Nadar would, however, continue to be the managing director of the company with the designation as the chief strategy officer of HCL Technologies. “We are living in unprecedented times where organizations and people across geographies are dealing with challenges related to the pandemic. However, this has also pushed businesses to accept the pandemic as a catalyst for change and look at building agility and resilience into every level of their organization. HCL, along with its partners, is helping customers embrace digital transformation and innovation to emerge stronger in this new normal. I am confident that, with decisive action leveraging digital momentum and sustainable business practices, we will together emerge as stronger entities,” said Shiv Nadar, managing director and chief strategy officer, HCL Technologies.