Shares of the IT giant jumped around 1 percent after the Husqvarna Group selected the company as its exclusive partner for digital transformation. The shares have delivered more than 25 percent returns to its shareholders on a YTD basis.
With a market capitalization of Rs. 3.60 lakh crores, the shares of HCL Technologies Ltd started Wednesday’s trading session positively at Rs. 1,325 compared to its previous close at Rs. 1,317.55. The shares hit a high of Rs. 1,399, gaining around 1 percent and closed their day at Rs. 1,329.55 apiece.
Such a positive movement was observed after the company in an exchange filing mentioned that they have extended its agreement with Swedish manufacturer Husqvarna Group for a strategic digital transformation partnership through artificial intelligence (AI)-based solutions.
Furthermore, the company mentioned that this is the first Indian company to have received a large global IT contract and be Vested certified. The vested approach promotes an environment that aims at not just improving services but also reducing costs and unlocking business values for the companies involved in the deal.
As per the newly extended five-year agreement, the company will leverage its digital, artificial intelligence (AI), engineering and support services to bring stability to Husqvarna Group’s IT environments with the help of adaptive, personalised, AI-based solutions as well as a collaborative governance framework.
Having a look at the latest financial statements published by the company, the revenues as well as net profits have shown positive movements.
The revenue increased marginally by 1.5 percent from Rs. 26,296 crores in the June quarter to Rs. 26,672 crores during the September quarter. In addition, the net profits increased approximately by 9 percent from Rs. 3,531 crores to Rs. 3,833 crores during the same timeframe.
HCL Technologies Ltd gets revenue from multiple sources mainly through IT and Business services making around 74.6 percent contributing to the company’s revenue, 16 percent from engineering and R&D services and the remaining 9.9 percent from their software.
In the latest quarter, HCL Technologies Ltd won a total of 16 large deals out of which 10 deals in services and the remaining 6 were for software. The orders were received across diverse industries such as life science and healthcare, public services, Technology and services, manufacturing, financial services and others.
Headquartered in New Delhi, HCL Technologies Ltd was incorporated in 1991. The company is a leading global IT services company, that offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO.
Written By Vaibhav Patil
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