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HCL Technologies CEO C Vijayakumar on Thursday expressed optimism for the company’s upcoming quarters despite the company’s Q1 scorecard falling short of street expectations due to the company’s robust transaction pipeline and ”excellent possibilities” that are currently in the advanced stages.

Regarding business attitudes, the senior executive at HCLTech revealed that the US market is moving more quickly than the European market, which is seeing comparatively slower decision-making.

The Noida-based IT services firm claimed to have “a strong pipeline at this point and a good amount of opportunities which are in the advanced stages,” contending that it competes in the global market with larger rivals like TCS and Infosys. According to an interview with PTI, this will result in revenue this year.

He also voiced his optimism for the future of order reservations.

Contrary to the generally unfavorable criticism regarding demand, Vijayakumar stated that there is actually “a lot of positivity on what technology can do for business and the role that technology leaders can play in transforming the business,” and that this perspective is reflected in client dialogues as well.

There is a lot of excitement surrounding the technological endeavors, the advancements they are making, the results they are getting, and how some of the new technologies may be able to assist them to get even greater results. Therefore, I believe that there is a lot of positive…, he stated.

The business predicts that overall spending on technology will increase.

So, he remarked, “I think some of this will help us gain some market share.”

Although the price environment is currently stable, it is challenging to estimate when a full recovery will occur due to market volatility.

I believe there is greater speed in the US, but decision-making in Europe is a little bit slower,” he said.

On Wednesday, HCLTech revealed a 7.6% increase in net profit from the same period last year. In comparison to the same time last year, its consolidated net profit increased to Rs 3,534 crore from Rs 3,283 crore.

Even the company’s expectations for the first quarter of this fiscal year were not met by the results. The telecom and tech verticals experienced “steep declines,” whereas the life sciences/healthcare, manufacturing, and financial services sectors all experienced considerable growth.

“I believe the pipeline to be very robust. The pipeline has significantly increased during the past two quarters. Therefore, I believe that going forward, bookings will be better,” he added.

In the March quarter, net new wins totaled USD 2 billion; in the June quarter, they were USD 1.6 billion.

So, he said, “I believe that on the strength of the last two quarters, whatever bookings we have done, we will see some growth momentum… but we are also having a strong pipeline at this point and a good amount of opportunities which are in the advanced stages, which we believe will also translate into revenue during this year.”

Although HCL Tech intends to hire in the current fiscal year, Vijayakumar claimed the levels won’t be comparable to the previous year even though the company’s headcount increased dramatically in FY22 and FY23.

To contribute to the overall expansion, this year will undoubtedly see some hiring, but it won’t be on the same scale as in FY23, he said.

There are no delays in onboarding and all offers are being honored, he emphasized.

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