Anjuman-I-Islam Allana Institute of Management Studies

Company mission, vision, goals, values and company performance in last 5yrs. By Sayyed Abbas Haider Roll no.34

Submitted:-prof. kamat sir

MISSION

We enable business transformation and enrichment of lives by delivering sustainable world class technology Products, Solutions & Services in our chosen markets thereby creating superior shareholder value.

VISION

A global corporation enriching lives and enabling business transformation for our customers, with leadership in chosen technologies and markets. Be the first choice for employees and partners, with commitment to sustainability.

Quality policy

We shall deliver defect free products, services and solutions to meet the requirements of our external and internal customers the first time, every time.

Industry Overview

Current State of Indian IT Industry

Indian IT Industry has witnessed a decade of growth. Indian IT exports have grown from$4bn in FY2000 to $50bn in FY2010 at a 10-year CAGR of 28.8%. During the first half of the decade, Indian IT exports grew at a 5-year CAGR of 35% from $4bn in FY2000 to $18bn inFY2005. During the second half of the decade, Indian IT exports grew at a 5-year CAGR of23% from $18bn in FY2005 to $50bn in FY2010. The industry can be segmented as per the (a) Verticals (b) Service Lines (c) Geographies. BFSI, Hi-tech/Telecom, and Manufacturing were the dominant verticals contributing to over 3/4th of the exports over past several years. BFSI contributed to 40% of Indian IT Exports during FY10. Hi-tech/Telecom and Manufacturing contributed 20% and 16%respectively. Emerging verticals (Media & Entertainment, Retail, Healthcare, Utilities, and Transportation) have contributed to nearly 1/4th of the exports. IT Services contributed to 55% of the IT Exports during FY10. BPO and Engineering Services contributed 25% and 20% respectively. This share distribution has remained some what constant over past several years. Within IT Services, the share of Custom Application Development Services came down from49% to 37% during the 3-year period, whereas the share of Remote Infrastructure Management and System Integration services increased from 11% to 20%. Application Management Services grew much faster than Application development services at a 3-year CAGR of 24%. Other IT Services (such as IT Consulting, Support & Training, Software Testing, SOA/Web Services etc.) grew at a 3-year CAGR of 17%.

HCL Technologies
While HCL Enterprise has a 30-year history, HCL Technologies is a relatively young company formed, 15 years ago, in 1998. During this period, HCL has built unique strengths in IT applications (custom applications for industry solutions and package implementation), IT infrastructure management and business process outsourcing, while maintaining and extending its leadership in product engineering. HCL has also built domain depth through a microvirtualization strategy in industries such as Financial Services, Hi-tech and Manufacturing, Retail, Media and Entertainment, Life Sciences, and Telecom.

HCL has created the ability to distribute value across the customer's IT landscape through its well-distributed services portfolio, significant domain strengths, and locally relevant geographic distribution. HCL has the widest service portfolio among Indian IT service providers, with each of its services having attained critical mass.

Our five mature lines of business are R&D and Engineering, Custom Applications, Enterprise Applications, IT Infrastructure Management, and BPO Services. In addition, HCL has recently launched its Enterprise Transformation Service offerings comprising of Business, Technology, Application and Data Transformation the four broad needs of any enterprise. Our ability to synergistically integrate these service lines across the entire IT landscape creates new zones for value creation. Additionally, HCL has created unique service leadership in each of these areas through best-of-breed unique propositions. HCLs leadership in these service areas has been recognized by several leading independent analysts.

In 2005, HCL started questioning the linearity of scale-driven business models adopted by service providers (largely in the IT application business). The questioning led us to the belief that the market was rapidly approaching a point of inflection, that is a point where the volume and value proportionality would change, opening up new opportunities for service providers who aspire to focus on value. With this realization, HCL embarked on a transformational journey that focuses on value centricity in customer relationships and on leveraging new market opportunities, while creating a unique employee experience. Hence HCL entered a new phase of evolution transforming it from a volume-driven service provider to value-centric enterprise that turns technology into competitive advantage for all its customers across the globe. Today HCLs new way of doing business is being recognized by Harvard, IDC, Fortune, Forbes, Economist, Business Week and the likes.

What makes HCL DIFFERENT?

Our 3 core values At HCL, we place enormous significance on our core values and we are committed to practicing them in our day-to-day interactions with employees and clients. These values continue to play a pivotal role in setting our organizational direction, and in conjunction with our mission and vision, they have helped form our identity and culture. Our core values also guide our decision making and separate us from our competition. But while our core values are enduring, we do re-evaluate their relevance and impact in the wake of significant societal, economic, or industrial developments. Yet, regardless of the peripheral changes, our core values continue to reflect a commitment to doing business and achieving our success ethically. There are three core values which were crucial in getting us where we are today. 1. EMPLOYEES FIRST In an industry that has long lived by the mantra that focus on the customer is the only thing that brings results, we wish to differ. At HCL, we focus on employees first. We believe that employees bring strategic value to an organization and are critical to its success in the global marketplace. The future growth and competitiveness of any organization depends more than ever before on attracting best talent, engaging and empowering them to achieve their own, and the organizations goals. Towards this, we practice Employees First the first of its kind of articulation, which is at the core of our efforts to provide our employees a work environment and culture they can take pride in. And it is lived everyday at HCL. We further took Employees First to new heights through some new initiatives such as:

Smart Service Desk - where employees can raise SLA-bound tickets on any internal service provider, and only employees can close these tickets, if satisfied

CEO Connect through U&I - where our CEO is personally available online to every employee, tours every location and holds interactive discussions that are complemented by a fully functional Presidents blog

Employees First Governing Council where Function Heads hold Town Hall Meetings and collectively address all employee questions and issues Open 360 Degree Feedback where employees rate their managers, even the CEO, and the feedback / rating is made public across the organization Talent Transformation - an initiative designed to build behavior-based competencies in individuals Employees First Academy - comprising three levels - Employees First Lifestyle, Employees First Leadership, and Harvard Emerging Leader Program, to initiate and nurture effective leaders

Employee Passion Indicative Count - assists employees in introspecting to identify their unique passion drivers that determine their performance and behavior at work

Directions - an annual event where the CEO and senior management conduct a face-to-face meeting with all employees to discuss company strategy and direction

And while the world waited to analyze the outcome of these moves, our Employees First concept became a popular case study at Harvard. In the Hewitt Best Employers study 2009, only two IT companies made it to the list in these times of heavy employee retrenchment HCL Technologies is at number 1. We have been ranked as the Best Employer in India across all industry segments. Workforce Management (the most influential HR publication in the US) adjudged HCL Technologies as the most innovative company in the world in workforce management. Business Week stated that our Employees First is a new and radical management philosophy which will catch on with the world sooner or later and the recognitions continue.

2. VALUE CENTRICITY In an industry dominated by Volume we have consciously chosen a value-centric non linear business model, which is today being recognized by clients and analysts globally. Our transformation journey began when we decided to focus on Value not Volume. We believe that every second of our engagements must be focused on value discovered and realized for our customers because true value is something that goes beyond the contractual agreements that we sign with them. At HCL, there are five ways we create value for our customers.

3. TRUST, TRANSPARENCY AND FLEXIBILITY We believe we may be among the most transparent enterprises in the world today. To us, transparency is vision, confidence, collaboration, flexibility and trust. Our business model is transparent and HCL is equally transparent to all stakeholders. It is our continued focus to engage all our stakeholders in a truly transparent environment, towards which we have taken a few steps:

Confidence for Investors: HCL works with PWC as its statutory auditors and KPMG for due diligence. We also work with E&Y for taxation. This unique twin audit mechanism (the first of its kind in the Indian IT Industry) and track record of maximizing dividend payment, ensures transparency in our business performance and asset position. [Transparency is the core reason why we have been recently voted as the best company for investor relations by Asiamoney]. Open Dialogue with Analysts: 30+ analysts come face to face with 500 global customers and over 300 employees at the HCL Global Meet, every year all freely mingling and sharing information with one another other.

Creating Value for Customers: HCL has a unique Service Delivery Platform the one-stopshop for customers to know everything they need to know about their engagements, progress, people and HCL. Our CSAT surveys consistently demonstrate the highest ratings on transparency and flexibility, a reputation we have lived up to by always being ready to commit to customer outcomes. Ensuring our Employees are indeed first: Innovations like open 360 degree feedback, U&I, Directions and SSD have truly made our management transparent and accountable to our employees. Collaboration for best practices: We have a rich heritage of partnerships and joint ventures; our culture of trusted partnerships is reflected in the fact that we have over 150 years of partnerships with the Global 500. These include JVs with organizations like Hewlett-Packard (since 1991), Deutsche Bank (since 2001), British Telecom (since 2002), NEC (since 2005), Celestica (since 2006), and Nokia (since 1996) to name a few. Living our values today and in time to come These core values have originated with HCLs founders. They are modeled and reinforced to live through many subsequent generations of leaders. HCL is acutely aware of the importance of demonstrating its values in all its interactions and strives to become the model that others emulate. This is what we stand for and this is how we have been helping our forward looking customers in creating competitive advantage for them.

Company performance in last 5yrs

Income statment in USD
Year on year Hcl Technologies Ltd grew revenues 31.08% from 2.70bn to 3.55bn while net income improved 34.85% from 280.60m to 378.40m.

REVENUE

Gross margin Net profit margin Operating margin

31.94% 10.67% 14.05%

NET INCOME

Div yield(5 year avg)

--

Div growth rate (5 year)

--

Payout ratio (TTM)

30.34%

Growth Rates in USD

Year on year, both dividends per share and earnings per share excluding extraordinary items growth increased 86.22% and 33.51%, respectively. The positive trend in dividend payments is noteworthy since very few companies in the Software & Programming industry pay a dividend. Additionally, five year annualized earnings per share growth is in-line with the industry average relative to its peers.

DIVIDEND PER SHARE

Return on assets Return on equity Return on investment

12.22% 22.24% 15.88%

EARNING PER SHARE

Cash flow per share

34.36

Price/Cash flow per share

11.80

Cash flow in USD

In 2011, Hcl Technologies Ltd increased its cash reserves by 15.26%, or 15.40m. The company earned 380.00m from its operations for a Cash Flow Margin of 10.72%. In addition the company used 173.40m on investing activities and also paid 203.70m in financing cash flows. View full cash flow statement CASH FLOW

EPS growth(5 years)

20.87

EPS (TTM) vs TTM 1 year ago

33.94

CASH

Current ratio

2.04

Quick ratio

--

Balance sheet in USD

Hcl Technologies Ltd has a Debt to Total Capital ratio of 20.12%. TOTAL ASSETS

Book value per share

134.18

Tangible book value per share

67.56

TOTAL DEBT

Total debt/total equity

0.2518

Total debt/total capital

0.2012