New Delhi: Software services provider HCL Technologies Ltd said on Tuesday that net profit more than doubled in the three months ended 30 June from a year earlier. Chief executive officer Vineet Nayar spoke in an interview about the company’s result and prospects. Edited excerpts:
The big question now is the umbrella guidance of 30-35% that you had held out for the next five years. Will this hold in FY10?
Growth momentum: Vineet Nayar, chief executive officer of HCL Technologies, says he is concerned about the business environment. Madhu Kapparath / Mint
I don’t think so, Shereen. The umbrella guidance was given in 2006, in a different time. Our view is different, our view is to be very innovative in our growth approach, to be different and unique in the way we do things, to deliver long-term sustained growth. So far we have delivered it. It’s very difficult to share what will happen in the short term.
What can we realistically expect in terms of FY10? If one was to talk about the industry average—and we are actually talking about flat-to-single digit growth—are you looking at bettering that?
When Lehman Brothers collapsed, one of the things that I did was, I said water is going to run out of the world. There is going to be limited water, let’s go and hoard. So we changed that rock structure within 24 hours. We put the best and brightest in the 25 deals which were going.. We destroyed all structures and said let’s win them. So... before the world died out, we cracked about $2 billion over that period of time. Now, that’s the revenue that you are seeing, that’s good news. The bad news is (for) January-February, April-May, July-August, no deals. You know the water has really dried out. So the growth that we have seen is thanks (to the fact) that we started ahead. So how will we deliver growth going forward? There has to be new innovation, which is what we have to focus on.
What does it actually mean in terms of revenues?
I continue to be concerned about the (business) environment. I continue to say that the environment is uncertain. And therefore not to be predicted. What we are doing is eating market share, launching new services, going to new geographies and trying very hard to keep the momentum of growth going.