Speaking on this occasion, CEO Anant Gupta shared the company's success with its employees and customer and said that the company will continue to reinvent itself in 2014.
He added that the company is seeing balanced growth in markets like US, Europe and Asia. Further, he said that HCL's infrastructure management service, which is an underpenetrated market, will continue to grow at a rapid pace.
HCL Technologies caters to half of total re-bid market worth USD 150 billion.
Below is the edited transcript of Anant Gupta's interview with CNBC-TV18
Q: HCL Tech has won company of the year at IBLA. It has been a big outperformer and has given a lot of rewards to shareholders. What makes HCL Tech tick and what can we expect from the company in 2014?
A: We have had a great run. It is actually the 10th quarter of sustainable performance. The last four quarters unusually have been much, much better, but our strategy really began about at least three years back when we were very focused on our Blue Ocean strategy in terms of going after open markets. Therefore I would say that it has been really 10 quarters great performance of the company.
The people to really thank are 88,000 employees that we have. It is a privilege on their behalf to accept this awarded and also to thank them for the great performance. The second really are customers because at the end of the day we are an IT services company and therefore customer satisfaction is extremely critical. Our customers' trusting us is extremely critical and therefore I am extremely thankful for them. We are continuing to sustain leadership position in our chosen markets, continuing to reinvent ourselves where we believe that the market dynamics are shifting. We would continue to be relevant to our customers because at the end of the day it is the value that we deliver to them which results in the company's success. Making sure that our ears are to the ground we listen to our customers and we fine-tune our service offerings in tune with the market and in tune with their expectations and needs.
Q: HCL Tech has clearly had a leadership position in the rebid market. Can you tell us the size of the rebid market in FY14-15 and how it compares with what it was in previous years?
A: If you look at the rebid market and this is something which we have been saying since 2009, obviously 2009-10-11 were really build up years. If you look at calendar year 14, 15 and 16 we believe it is a market which is anywhere between USD 140-160 billion market which is up for renewal. It is roughly about USD 50-55 billion each year, so there is no big skew between each of these three years.
The interesting metric is the churn rate in these markets. The percentage of churn in these markets used to be below 20 percent about three years back, that has gone up to greater than 30 percent now, so it is about 35-36 percent. We do not have any new published data from the external reports, but it is anywhere north of 35 percent.
It is USD 150 billion plus market for the next three years, 35 percent churn rate. Assuming that we continue to deliver differentiation that the market wants, it is a great market to be therein. While the market is big it is important to realise that the entry barrier to this market is a little high, because at the end, you are really taking on a moving ship, so someone is running the IT services for the customer and here comes a new service provider who now needs to takeover and deliver these services. The entry barrier unlike projects needs to be built on a very strong track record of transitioning services which is very, very critical for the mission critical environment of the customer.
HCL Tech stock price
On January 14, 2014, at 14:10 hrs HCL Technologies was quoting at Rs 1319.40, down Rs 25.4, or 1.89 percent. The 52-week high of the share was Rs 1352.00 and the 52-week low was Rs 648.00.
The company's trailing 12-month (TTM) EPS was at Rs 61.46 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 21.47. The latest book value of the company is Rs 146.41 per share. At current value, the price-to-book value of the company is 9.01.
Anda sedang membaca artikel tentang
Have seen balanced growth in US, Europe Asia: HCL Tech
Dengan url
https://kesehatanda.blogspot.com/2014/01/have-seen-balanced-growth-in-us-europe.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Have seen balanced growth in US, Europe Asia: HCL Tech
namun jangan lupa untuk meletakkan link
Have seen balanced growth in US, Europe Asia: HCL Tech
sebagai sumbernya
0 komentar:
Posting Komentar