7 months ago
HCLTech Aims for 1.5% Revenue Boost
HCLTech, a big IT company in India, bought two companies to help them grow.
They spent $400 million to buy parts of Hewlett Packard Enterprise and Jaspersoft.
These buys will help HCLTech get better at things like 5G networks and artificial intelligence.
The company thinks these new parts will add about 1.5% to their money made next year.
They are also focusing on areas like banking and finance, which are growing.
HCLTech is trying to find new ways to grow because the usual ways aren't growing much right now.
HCLTech expects $400 million acquisitions to add 1.5% to FY27 revenue.
Acquisitions include HPE's telecom solutions and Jaspersoft for 5G and AI capabilities.
Telecom segment grew 11.7% year-on-year, contributing 12% to revenue.
BFSI vertical grew 11.4% in constant currency, expected to drive future growth.
Advanced AI segment revenue stood at $148 million in Q3, excluding classical AI.
- Who
- HCLTech
- What
- Acquired HPE's telecom solutions and Jaspersoft
- Where
- Global, with focus on US market
- When
- Acquisitions to be completed in Q4 FY26 or Q1 FY27
- Why
- To strengthen capabilities in 5G, AI, and data solutions
Key facts
- Company
- HCLTech
- Acquisitions
- HPE's telecom solutions, Jaspersoft
- Acquisition Cost
- $400 million
- Expected Revenue Contribution
- 1.5% in FY27
- Growth Areas
- 5G, AI, BFSI
- Telecom Segment Growth
- 11.7% year-on-year
- BFSI Growth
- 11.4% in constant currency
- Advanced AI Revenue (Q3)
- $148 million
Quotes
C Vijayakumar
Chief executive officer and managing director of HCLTech
“The acquisitions will be completed in the fourth quarter or the first quarter of the next financial year (FY27), and we believe they will contribute about 1.5 per cent to revenue in the next financial year.”
rediff.com
“The highest annual contract value of bookings in the past four years, growth traction across business segments, and improving profitability position HCLTech well to deliver strong earnings growth in FY27.”
rediff.com
D D Mishra
Gartner analyst
“HCLTech’s strategic focus on regional market penetration and customer-specific adaptations points to a longer-term commitment to digital transformation that is not solely dependent on explosive top-line growth.”
rediff.com
