HCL Technologies Q1 revenue raises at Rs 20,068 crore; Founder, MD Shiv Nadar resigns
Shiv Nadar, co-founder of India leading IT services firm HCL Technologies in 1975, has resigned as the Managing Director and board member of the firm.
He would be the Chairman Emeritus and strategic advisor to the board. Nadar’s daughter Roshni Nadar Malhotra, who was elected as the Chairperson last year, would continue in her role. HCL Tech CEO C Vijayakumar would accept as the company Managing Director, the management said on Monday.
Nadar had co-founded HCL Tech more than four decades ago mainly as a computer hardware firm. The Noida-headquartered company has crossed more than $10 billion revenue in 2021.
"Shiv Nadar, Chief Strategy Officer & Managing Director of the Company, on completing 76 years of age, has tendered his resignation as the Managing Director as well as the Director of the company with effect from close of business hours on July 19, 2021,” the tech firm notified the stock exchanges in a filing.
The IT veteran earlier attempted to sell digital calculators through his business Microcomp and later founded HCL Tech with seven other colleagues with an investment of Rs 1.8 lakh. The firm later expanded to Singapore and sold IT hardware. Nadar currently owns nearly 60% shareholding in the firm.
In the meantime, the company’s revenue for Q 1, FY22 grew by 2.2% sequentially at Rs 20,068 crore whereas earnings before income and tax (EBIT) declined by 2.1% at 19.6%, the lower end of the margin guidance that the company had provided earlier.
The firm said that the impact of one-time bonuses handed over to its employees during the June quarter worth Rs 728 crore wasn’t factored in while calculating the profitability.
The firm has been able to maintain a healthy cash flow of $ 2.05 billion despite a dividend payout of Rs 4,344 crore.
HCL’s contract value for the June quarter stood at $1.66 bn, up 37% y-o-y although the deal value almost halved in sequence. The deal-mix constituted of eight large services and four deals succeeds.