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HCL Tech secures $2.1 billion mega deal from Verizon Business

HCL-Tech-secures-$2.1-billion-mega-deal-from-Verizon-Business-nologo

HCLTech stock made a 2 percent gap up opening, following the news of signing of a mega deal with a Global 100 corporation, Verizon. The company in a statement said, that they expect the deal will have a positive revenue impact over the next six years beginning in November 2023 with an estimated new total contract value of US$ 2.1 billion over the term.

The partnership combines Verizon’s networking power, solutioning, and scale with HCLTech’s market-leading Managed Service capabilities to usher in a new era of large-scale wireline service delivery for enterprise customers.

According to the note filed with the exchange, HCLTech will be Verizon Business's primary collaborator in all deployments involving MNS globally for enterprise customers. Verizon Business will lead sales, solutioning, and customer acquisitions, and HCLTech will lead post-sale implementations and ongoing support, bringing the best of both companies to better serve the needs of our customers around the world. To execute the coordinated balance of responsibilities at enterprise scale, a select group of Verizon Business Global Customer Operations staff will transition to HCLTech.

According to the CEO of Verizon Business, Kyle Malady, said, "HCLTech is a widely recognized industry leader for Managed Network Services, and with their IT service expertise and ongoing support of our enterprise networking deployments, Verizon Business can modernise its service delivery and simultaneously heighten our focus on helping customers incorporate next-generation technology."

A note from CEO and MD of HCLTech, "Managed Network Services is core to our business, and we’re proud to collaborate with Verizon Business to lead MNS in all of their network deployments, modernization and operations for private enterprise."

In the July quarter (Q124) earnings release, the company reported 18 large deals, of which 7 were from services and 11 from software segment. New deal wins were valued at $1565 million. The booking and pipeline were at record high, growing 17.7 at Q-o-Q and 26.2 Y-o-Y. Clients with $100 mn revenue were up 3 YoY and $50 mn clients were up 6YoY.

Shares of HCL Tech Ltd were trading 3% up at Rs. 1169.

 

P&L FY 2023 FY 2022 FY 2021 FY 2020 FY 2019
Total Revenue 1,02,814.00 86,718.00 76,306.00 71,265.00 61,370.00
Total Revenue Growth (%) 18.56 13.65 7.07 16.12 18.51
Total Expenses 83,326.00 69,766.00 60,453.00 57,285.00 48,748.00
Total Expenses Growth (%) 19.44 15.41 5.53 17.51 19.55
Profit after Tax (PAT) 14,851.00 13,499.00 11,145.00 11,057.00 10,120.00
PAT Growth (%) 10.02 21.12 0.8 9.26 16.04
Operating Profit Margin (%) 19.55 20.16 21.7 20.49 21.17
Net Profit Margin (%) 14.63 15.76 14.78 15.64 16.74

 

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