HCL Technologies
HCL Technologies Limited offers software, information technology (IT) infrastructure, and business process outsourcing services worldwide. The last earnings update was 85 days ago. More info.
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HCLTECH Share Price and Events
7 Day Returns
1 Year Returns
HCLTECH Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| HCL Technologies (HCLTECH) | 2.9% | 11.9% | 20.3% | 6.6% | 36% | 62.4% |
| IN IT | 1% | 5.3% | 10.3% | 21.2% | 47.8% | 82% |
| IN Market | -1.9% | 1.2% | 5.1% | -2.8% | 38.3% | 71% |
1 Year Return vs Industry and Market
- HCLTECH underperformed the IT industry which returned 21.2% over the past year.
- HCLTECH outperformed the Market in India which returned -2.8% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
HCL Technologies
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for HCL Technologies.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 31 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 16.6% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.06 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 35%) (2.72%)) |
1.05 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.05 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.05 * 8.6%) |
16.58% |
Discounted Cash Flow Calculation for NSEI:HCLTECH using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for HCL Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 16.58%) |
|
|---|---|---|---|
| 2019 | 995.25 | Analyst x12 | 853.69 |
| 2020 | 1,361.09 | Analyst x19 | 1,001.45 |
| 2021 | 1,556.92 | Analyst x17 | 982.61 |
| 2022 | 1,738.56 | Est @ 11.67% | 941.18 |
| 2023 | 1,919.92 | Est @ 10.43% | 891.54 |
| 2024 | 2,103.60 | Est @ 9.57% | 837.90 |
| 2025 | 2,292.12 | Est @ 8.96% | 783.13 |
| 2026 | 2,487.83 | Est @ 8.54% | 729.11 |
| 2027 | 2,692.87 | Est @ 8.24% | 676.95 |
| 2028 | 2,909.23 | Est @ 8.03% | 627.32 |
| Present value of next 10 years cash flows | $8,324.88 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,909.23 × (1 + 7.55%) ÷ (16.58% – 7.55%) |
$34,644.91 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $34,644.91 ÷ (1 + 16.58%)10 |
$7,470.54 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $8,324.88 + $7,470.54 |
$15,795.41 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $15,795.41 / 1,356.28 |
$11.65 |
| Calculation | Result | |
|---|---|---|
| Exchange Rate | USD/INR
(Reporting currency to currency of NSEI:HCLTECH) |
69.835 |
| Value per Share (INR) |
= Value per Share in USD x Exchange Rate (USD/INR)
= $11.65 x 69.835 |
₹813.31 |
| Value per share (INR) | From above. | ₹813.31 |
| Current discount | Discount to share price of
₹1,138.95
= -1 x (₹1,138.95 - ₹813.31) / ₹813.31 |
-40% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of HCL Technologies is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for HCL Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
HCL Technologies's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $1.03 |
| NSEI:HCLTECH Share Price ** | NSEI (2019-04-24) in INR | ₹1138.95 |
| NSEI:HCLTECH Share Price converted to USD reporting currency | Exchange rate (INR/ USD) 0.014 | $16.31 |
| India IT Industry PE Ratio | Median Figure of 84 Publicly-Listed IT Companies | 15.67x |
| India Market PE Ratio | Median Figure of 2,739 Publicly-Listed Companies | 16.02x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of HCL Technologies.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NSEI:HCLTECH Share Price ÷ EPS (both in USD) = 16.31 ÷ 1.03 |
15.89x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HCL Technologies is overvalued based on earnings compared to the IN IT industry average.
- HCL Technologies is good value based on earnings compared to the India market.
Price based on expected Growth
Does
HCL Technologies's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 15.89x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts |
9%per year |
| India IT Industry PEG Ratio | Median Figure of 21 Publicly-Listed IT Companies | 1.31x |
| India Market PEG Ratio | Median Figure of 586 Publicly-Listed Companies | 1.32x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 15.89x ÷ 9% |
1.76x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HCL Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
HCL Technologies's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $4.17 |
| NSEI:HCLTECH Share Price * | NSEI (2019-04-24) in INR | ₹1138.95 |
| NSEI:HCLTECH Share Price converted to USD reporting currency | Exchange rate (INR/ USD) 0.014 | $16.31 |
| India IT Industry PB Ratio | Median Figure of 108 Publicly-Listed IT Companies | 1.36x |
| India Market PB Ratio | Median Figure of 3,630 Publicly-Listed Companies | 1.09x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NSEI:HCLTECH Share Price ÷ Book Value per Share (both in USD) = 16.31 ÷ 4.17 |
3.91x |
* Primary Listing of HCL Technologies.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- HCL Technologies is overvalued based on assets compared to the IN IT industry average.
Value checks
We assess HCL Technologies's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) HCL Technologies has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- HCL Technologies's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
- HCL Technologies's earnings growth is positive but not above the India market average.
- HCL Technologies's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NSEI:HCLTECH Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts | 9% |
| NSEI:HCLTECH Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts | 11% |
| India IT Industry Earnings Growth Rate | Market Cap Weighted Average | 9.5% |
| India IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9.4% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 18.3% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 11.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 10,767 | 2,006 | 1,739 | 28 |
| 2020-03-31 | 9,818 | 1,813 | 1,589 | 31 |
| 2019-03-31 | 8,701 | 1,532 | 1,458 | 32 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 8,393 | 1,354 | 1,420 |
| 2018-09-30 | 8,179 | 1,314 | 1,397 |
| 2018-06-30 | 8,008 | 1,301 | 1,379 |
| 2018-03-31 | 7,838 | 1,345 | 1,360 |
| 2017-12-31 | 7,617 | 1,218 | 1,366 |
| 2017-09-30 | 7,374 | 1,275 | 1,332 |
| 2017-06-30 | 7,169 | 1,352 | 1,294 |
| 2017-03-31 | 6,975 | 1,408 | 1,262 |
| 2016-12-31 | 6,746 | 1,355 | 1,198 |
| 2016-09-30 | 6,566 | 1,222 | 1,182 |
| 2016-06-30 | 6,389 | 1,095 | 1,145 |
| 2016-03-31 | 6,235 | 1,083 | 1,118 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
All data from HCL Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 1.26 | 1.43 | 1.12 | 27.00 |
| 2020-03-31 | 1.16 | 1.30 | 1.08 | 31.00 |
| 2019-03-31 | 1.06 | 1.10 | 1.03 | 31.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 1.03 |
| 2018-09-30 | 1.00 |
| 2018-06-30 | 0.99 |
| 2018-03-31 | 0.97 |
| 2017-12-31 | 0.97 |
| 2017-09-30 | 0.94 |
| 2017-06-30 | 0.91 |
| 2017-03-31 | 0.89 |
| 2016-12-31 | 0.85 |
| 2016-09-30 | 0.84 |
| 2016-06-30 | 0.81 |
| 2016-03-31 | 0.79 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess HCL Technologies's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
HCL Technologies has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has HCL Technologies performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- HCL Technologies's year on year earnings growth rate has been positive over the past 5 years.
- HCL Technologies's 1-year earnings growth is less than its 5-year average (4% vs 7.4%)
- HCL Technologies's earnings growth has not exceeded the IN IT industry average in the past year (4% vs 24.5%).
Earnings and Revenue History
All data from HCL Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 8,392.61 | 1,420.46 | 992.05 | |
| 2018-09-30 | 8,178.67 | 1,396.78 | 947.15 | |
| 2018-06-30 | 8,008.04 | 1,379.32 | 923.53 | |
| 2018-03-31 | 7,837.69 | 1,360.25 | 913.50 | |
| 2017-12-31 | 7,616.55 | 1,366.13 | 882.34 | |
| 2017-09-30 | 7,374.34 | 1,331.84 | 863.41 | |
| 2017-06-30 | 7,168.74 | 1,293.88 | 838.50 | |
| 2017-03-31 | 6,975.20 | 1,262.43 | 824.64 | |
| 2016-12-31 | 6,745.62 | 1,197.65 | 812.63 | |
| 2016-09-30 | 6,566.42 | 1,182.43 | 813.45 | |
| 2016-06-30 | 6,388.54 | 1,144.89 | 803.98 | |
| 2016-03-31 | 6,235.40 | 1,118.31 | 795.55 | |
| 2015-12-31 | 6,138.69 | 1,103.49 | 783.67 | |
| 2015-09-30 | 6,063.32 | 1,120.20 | 758.60 | |
| 2015-06-30 | 5,952.30 | 1,163.69 | 733.09 | |
| 2015-03-31 | 5,822.00 | 1,190.00 | 702.00 | |
| 2014-12-31 | 5,692.41 | 1,184.36 | 678.20 | |
| 2014-09-30 | 5,522.96 | 1,118.48 | 663.55 | |
| 2014-06-30 | 5,359.75 | 1,036.92 | 657.13 | |
| 2014-03-31 | 5,180.45 | 943.25 | 656.16 | |
| 2013-12-31 | 5,009.98 | 867.93 | 656.52 | |
| 2013-09-30 | 4,842.97 | 800.06 | 648.80 | |
| 2013-06-30 | 4,686.45 | 732.46 | 636.63 | |
| 2013-03-31 | 4,512.06 | 659.00 | 454.00 | |
| 2012-12-31 | 4,260.58 | 578.41 | 422.96 | |
| 2012-09-30 | 4,174.57 | 522.39 | 414.93 | |
| 2012-06-30 | 4,151.53 | 481.39 | 599.52 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- HCL Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- HCL Technologies used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
- HCL Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess HCL Technologies's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
HCL Technologies has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is HCL Technologies's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up HCL Technologies's finances.
The net worth of a company is the difference between its assets and liabilities.
- HCL Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- HCL Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 6.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from HCL Technologies Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 5,720.42 | 581.67 | 918.50 |
| 2018-09-30 | 5,774.56 | 452.75 | 850.70 |
| 2018-06-30 | 5,677.85 | 83.23 | 936.14 |
| 2018-03-31 | 5,647.75 | 85.46 | 988.23 |
| 2017-12-31 | 5,437.79 | 92.23 | 842.96 |
| 2017-09-30 | 5,056.00 | 119.54 | 1,118.71 |
| 2017-06-30 | 5,374.92 | 96.56 | 1,431.08 |
| 2017-03-31 | 5,162.44 | 89.58 | 1,581.38 |
| 2016-12-31 | 4,559.82 | 98.55 | 1,676.15 |
| 2016-09-30 | 4,494.43 | 100.17 | 1,628.26 |
| 2016-06-30 | 4,302.74 | 130.15 | 1,589.34 |
| 2016-03-31 | 4,229.17 | 164.56 | 1,503.45 |
| 2015-12-31 | 4,085.24 | 44.74 | 1,482.83 |
| 2015-09-30 | 3,916.96 | 59.12 | 1,569.90 |
| 2015-06-30 | 3,888.88 | 101.77 | 1,671.26 |
| 2015-03-31 | 3,736.42 | 99.87 | 1,395.27 |
| 2014-12-31 | 3,568.20 | 99.09 | 1,509.64 |
| 2014-09-30 | 3,405.84 | 147.34 | 1,439.70 |
| 2014-06-30 | 3,336.58 | 169.15 | 1,576.52 |
| 2014-03-31 | 3,058.59 | 197.04 | 1,264.44 |
| 2013-12-31 | 2,741.08 | 168.22 | 1,029.53 |
| 2013-09-30 | 2,538.09 | 179.44 | 835.72 |
| 2013-06-30 | 2,406.99 | 175.87 | 715.69 |
| 2013-03-31 | 2,424.39 | 258.29 | 681.09 |
| 2012-12-31 | 2,250.59 | 290.79 | 585.93 |
| 2012-09-30 | 2,218.03 | 310.63 | 484.64 |
| 2012-06-30 | 1,768.80 | 392.89 | 448.34 |
- HCL Technologies's level of debt (10.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (6.1% vs 10.2% today).
- Debt is well covered by operating cash flow (232.8%, greater than 20% of total debt).
- HCL Technologies earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess HCL Technologies's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) HCL Technologies has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is HCL Technologies's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
HCL Technologies
shares you are expected to receive
₹13
in your first year as a dividend.
Dividend Amount
- HCL Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
- HCL Technologies's dividend is below the markets top 25% of dividend payers in India (1.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
| India IT Industry Average Dividend Yield | Market Cap Weighted Average of 40 Stocks | 1.5% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1400 Stocks | 1.4% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-03-31 | 0.47 | 25.00 |
| 2020-03-31 | 0.43 | 27.00 |
| 2019-03-31 | 0.21 | 30.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-10-23 | 0.108 | 0.789 |
| 2018-05-02 | 0.108 | 0.820 |
| 2018-01-19 | 0.119 | 0.823 |
| 2017-07-27 | 0.122 | 0.910 |
| 2017-01-24 | 0.352 | 2.833 |
| 2016-10-21 | 0.348 | 2.982 |
| 2016-08-03 | 0.357 | 3.009 |
| 2016-04-28 | 0.353 | 3.244 |
| 2016-01-19 | 0.233 | 1.921 |
| 2015-10-19 | 0.207 | 1.640 |
| 2015-08-03 | 0.195 | 1.414 |
| 2015-04-21 | 0.171 | 1.176 |
| 2015-01-30 | 0.143 | 0.918 |
| 2014-07-31 | 0.078 | 0.623 |
| 2013-11-28 | 0.095 | 0.869 |
| 2013-07-31 | 0.087 | 1.156 |
| 2012-10-17 | 0.066 | 1.128 |
| 2012-07-25 | 0.142 | 2.872 |
| 2012-04-18 | 0.070 | 1.636 |
| 2012-01-17 | 0.077 | 1.692 |
| 2011-10-18 | 0.075 | 1.954 |
| 2011-10-07 | 0.081 | 1.913 |
| 2011-07-27 | 0.081 | 1.957 |
| 2011-04-20 | 0.088 | 1.595 |
| 2011-01-19 | 0.087 | 1.688 |
| 2010-10-22 | 0.065 | 1.396 |
| 2010-10-20 | 0.045 | 0.947 |
| 2010-07-29 | 0.043 | 0.967 |
| 2009-08-31 | 0.071 | 1.992 |
| 2009-08-25 | 0.071 | 2.280 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
HCL Technologies's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are thoroughly covered by earnings (9x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
Income/ dividend checks
We assess HCL Technologies's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can HCL Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) HCL Technologies has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $0 |
| TENURE AS CEO | 2.5 years |
CEO Bio
Mr. C. VijayaKumar, also known as Vijay, has been the Chief Executive Officer and President at HCL Technologies Ltd. since October 20, 2016 and served as its Chief Operating Officer from July 2016 to October 20, 2016. Mr. VijayaKumar served as President of Infrastructure Services at HCL Technologies Ltd. until August 2, 2016. Mr. VijayaKumar served as Head of Delivery - Infrastructure Management Services at HCL Technologies Ltd. since March 2015. Mr. VijayaKumar served as a Corporate Vice President of Global Infrastructure Delivery Services at HCL Technologies Ltd. Mr. VijayaKumar was responsible for business planning, service delivery, transition, transformation and ongoing governance. He heads worldwide delivery and operations for the Infrastructure Services Division of HCL Technologies (HCLT). Under his leadership, the Global Infrastructure Service Delivery organization has consistently achieved best in class Customer Experience Scores, been applauded in numerous industry reports and won many awards from Fortune/Global 500 customers. He joined HCL as part of the start-up team at Comnet as a Senior Engineer almost two decades back and swiftly rose up the ranks on the dint of his diligence and many path-breaking ideas that has helped the rapid growth of HCL's Infrastructure Services business. His first project at HCL was the setting up of the world’s first floorless stock exchange network in 1994, which created a new paradigm for digital stock trading. In the past, he has also had a successful stint in Sales as a Regional Sales Head in the Indian market and led the delivery organization for North America. He has attended the Executive Management program at XLRI, Jamshedpur and the Personal Leadership program from the Franklin Covey Leadership Institute. Mr. VijayaKumar holds a Bachelors of Engineering (Electrical & Electronics Engineering) degree from P.S.G. College of Technology in Tamil Nadu, India.
CEO Compensation
- Insufficient data for Vijay, CVK to compare compensation growth.
- Vijay, CVK's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the HCL Technologies management team in years:
- The average tenure for the HCL Technologies management team is less than 2 years, this suggests a new team.
Management Team
Shiv Nadar
Founder
$16M
73
Vijay, CVK VijayaKumar
President & CEO
2.5 yrs
Prateek Aggarwal
Chief Financial Officer
51
0.5 yrs
Manish Anand
Senior VP
$7M
50
V. Apparao
Chief Human Resources Officer
56
1.3 yrs
Goutam Rungta
Executive Vice President
45
Amit Roy
Executive Vice President of Taxation
59
Rangarajan Vijayaradhavan
Executive Vice President
53
Varanasi Guru Venkata Sharma
Senior Vice President
54
Subramanian Gopalkrishnan
Executive Vice President
51
Board of Directors Tenure
Average tenure and age of the HCL Technologies board of directors in years:
- The tenure for the HCL Technologies board of directors is about average.
Board of Directors
Shiv Nadar
Founder
$16M
73
Roshni Malhotra
Vice Chairperson
$8M
36
0.5 yrs
Ramanathan Srinivasan
Non-Executive & Independent Director
$11M
72
8 yrs
Subramanian Madhavan
Non-Executive & Independent Director
$8M
62
6.3 yrs
Robin Abrams
Non-Executive & Independent Director
$12M
67
19.6 yrs
Sosale Sastry
Non-Executive & Independent Director
$9M
57
6.8 yrs
Nishi Vasudeva
Non-Executive & Independent Director
$6M
62
2.7 yrs
Deepak Kapoor
Non-Executive & Independent Director
$4M
59
1.8 yrs
Thomas Sieber
Non-Executive & Independent Director
$8M
56
3.5 yrs
James Adamczyk
Non-Executive & Independent Director
59
0.8 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by HCL Technologies insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 25. Mar 19 | Buy | C. VijayaKumar | Individual | 20. Mar 19 | 22. Mar 19 | 41,030 | ₹1,046.51 | ₹42,938,254 | ||
| 25. Mar 19 | Sell | Vijay Guntur | Individual | 22. Feb 19 | 20. Mar 19 | -1,300 | ₹1,037.25 | ₹-1,347,491 | ||
| 18. Feb 19 | Buy | Vijay Guntur | Individual | 06. Feb 19 | 07. Feb 19 | 1,000 | ₹1,062.50 | ₹1,062,500 | ||
| 12. Nov 18 | Buy | Vama Sundari Investments (Delhi) Private Limited | Company | 07. Nov 18 | 07. Nov 18 | 11,000 | ₹1,033.97 | ₹11,373,628 | ||
| 06. Nov 18 | Buy | Vama Sundari Investments (Delhi) Private Limited | Company | 02. Nov 18 | 02. Nov 18 | 570,000 | ₹1,006.51 | ₹573,710,036 | ||
| 01. Nov 18 | Buy | Vama Sundari Investments (Delhi) Private Limited | Company | 30. Oct 18 | 30. Oct 18 | 545,000 | ₹1,007.81 | ₹549,258,838 | ||
| 24. Sep 18 | Sell | Vijay Guntur | Individual | 18. Sep 18 | 24. Sep 18 | -1,500 | ₹1,095.00 | ₹-1,640,150 | ||
| 14. Sep 18 | Sell | Gade Rao | Individual | 04. Sep 18 | 06. Sep 18 | -15,000 | ₹1,078.42 | ₹-16,176,299 | ||
| 10. Sep 18 | Sell | Amit Roy | Individual | 24. Aug 18 | 06. Sep 18 | -950 | ₹1,054.33 | ₹-1,001,618 | ||
| 30. Aug 18 | Sell | Vijay Guntur | Individual | 27. Aug 18 | 27. Aug 18 | -500 | ₹1,040.00 | ₹-520,000 | ||
| 24. Aug 18 | Sell | Amit Roy | Individual | 01. Aug 18 | 23. Aug 18 | -960 | ₹1,410.50 | ₹-1,354,084 | ||
| 21. Aug 18 | Sell | Anil Chanana | Individual | 14. Aug 18 | 21. Aug 18 | -63,730 | ₹1,008.27 | ₹-63,904,127 | ||
| 17. Aug 18 | Sell | Vijay Guntur | Individual | 14. Aug 18 | 14. Aug 18 | -500 | ₹1,000.00 | ₹-500,000 | ||
| 03. Aug 18 | Sell | Vijay Guntur | Individual | 01. Aug 18 | 01. Aug 18 | -1,500 | ₹976.00 | ₹-1,464,000 | ||
| 19. Jun 18 | Buy | Dalip Sachdeva | Individual | 03. May 18 | 15. Jun 18 | 2,000 | ₹909.61 | ₹1,819,215 | ||
Management checks
We assess HCL Technologies's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) HCL Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Does HCL Technologies Limited's (NSE:HCLTECH) Past Performance Indicate A Stronger Future?
Did HCLTECH's recent earnings growth beat the long-term trend and the industry. … HCLTECH's trailing twelve-month earnings (from 30 September 2018) of US$1.4b has … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.3%, indicating the rate at which HCLTECH is growing has slowed down.
Simply Wall St - – Full articleIs HCL Technologies Limited (NSE:HCLTECH) A High Quality Stock To Own?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.24. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHCL Technologies Limited (NSE:HCLTECH): Has Recent Earnings Growth Beaten Long-Term Trend?
Today I will run you through a basic sense check to gain perspective on how HCL Technologies is doing by comparing its latest earnings with its long-term trend as well as the performance of its it industry peers. … Did HCLTECH beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 9.3%, indicating the rate at which HCLTECH is growing has slowed down
Simply Wall St - – Full articleHCL Technologies Limited (NSE:HCLTECH): Why Return On Capital Employed Is Important
As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand HCL Technologies’s capital returns we will look at a useful metric called return on capital employed.
Simply Wall St - – Full articleTop Bear Market Investment: HCL Technologies Limited (NSE:HCLTECH)
High quality stocks such as HCL Technologies Limited has fared well over time in a fickle stock market, which is why I want to bring it into light amongst all the chaos. … Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … HCL Technologies Limited provides software, business process outsourcing, and information technology (IT) infrastructure services worldwide
Simply Wall St - – Full articleShould You Be Concerned About HCL Technologies Limited's (NSE:HCLTECH) Investors?
I am going to take a deep dive into HCL Technologies Limited’s (NSE:HCLTECH) most recent ownership structure, not a frequent subject of discussion among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.
Simply Wall St - – Full articleHCL Technologies Limited (NSE:HCLTECH): Exploring Free Cash Flows
Two important questions to ask before you buy HCL Technologies Limited (NSE:HCLTECH) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of HCL Technologies’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash HCL Technologies has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations
Simply Wall St - – Full articleWhat Do Analysts Think About HCL Technologies Limited's (NSE:HCLTECH) Future?
In March 2018, HCL Technologies Limited (NSE:HCLTECH) released its earnings update. … the higher past 5-year average growth rate of 16.29% … Presently, with latest-twelve-month earnings at US$1.36b, we should see this growing to US$1.39b by 2019.
Simply Wall St - – Full articleReasons Why I Like HCL Technologies Limited (NSE:HCLTECH)
HCL Technologies Limited (NSE:HCLTECH) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of HCLTECH, it.
Simply Wall St - – Full articleCalculating The Intrinsic Value Of HCL Technologies Limited (NSE:HCLTECH)
I am going to run you through how I calculated the intrinsic value of HCL Technologies Limited (NSE:HCLTECH). … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleCompany Info
Description
HCL Technologies Limited offers software, information technology (IT) infrastructure, and business process outsourcing services worldwide. It provides application development and maintenance services; SAP landscape transformation, system conversion, and implementation services; Microsoft customer relationship management, cloud, analytics, infrastructure, and workplace innovation services; Oracle business consulting, implementation, upgrade, managed, and migration services; and business assurance and testing services, as well as autonomics and orchestration services, products, and platforms. The company also offers data center, workplace, network, mainframe, and service integration and management services. In addition, it provides embedded, software, digital, mechanical, and system and hardware engineering services, as well as product lifecycle management, product testing, and VLSI design services. Further, the company offers business supply chain management, finance and accounting, digital and content, and automation services. It serves financial services, consumer services, life science and healthcare, manufacturing, and public services industries. HCL Technologies Limited has a strategic alliance with Pivotal Software, Inc. to generate cloud-native applications for Pivotal cloud Foundry, a cloud-native application platform; and collaboration with IBM in designing hybrid cloud of organizations. HCL Technologies Limited was founded in 1976 and is headquartered in Noida, India.
Details
| Name: | HCL Technologies Limited |
| HCLTECH | |
| Exchange: | NSEI |
| Founded: | 1976 |
| ₹1,494,619,312,536 | |
| 1,356,278,868 | |
| Website: | http://www.hcltech.com |
| Address: |
HCL Technologies Limited Plot No. 3A, Technology Hub, Noida, Uttar Pradesh, 201304, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NSEI | HCLTECH | Equity Shares | National Stock Exchange of India | IN | INR | 11. Jan 2000 | |
| BSE | 532281 | Equity Shares | Mumbai Stock Exchange | IN | INR | 11. Jan 2000 |
Number of employees
Current staff
Industry
| IT Consulting and Other Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/24 12:47 |
| End of day share price update: | 2019/04/24 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/01/29 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
