New Delhi: Vineet Nayyar, chief executive of HCL Technologies Ltd, spoke in an interview about the firm’s outlook in the near future. Edited excerpts:
More challenges: HCL Technologies chief executive officer Vineet Nayyar. Madhu Kapparath / Mint
Infosys has come out with a good set of numbers though they disappointed on the guidance. There are signs of a shallow recovery in the US. How are you viewing your order pipeline?
We are just coming out of a year where our total booking is twice as much as last year’s. So from that point of view we have demonstrated that, number one, our business model is robust, and number two, our investments in sales organization and new geographies have resulted into huge amount of new bookings, which is twice as much of last year and which is more than I think anybody else has announced. If you take any market share data, we are ahead of the race.
The market has been talking about foreign exchange hedges. You have cancelled quite a bit. Are you looking to cancel any further?
I think (with regards to) forex, irrespective of what you do, you can get it hugely wrong or you can get it hugely right. Now we are purely on a cash-flow basis. So (we will) try and cancel the hedges based on some prediction on what’s going to happen to the dollar so that we limit the loss.
What are your dividend restoration plans?
Because of the cash flow challenges which we face, because of the hedging we talked about, we have a challenge for the next six-seven quarters. And therefore, it was essential for us to bring down the dividend—we are still paying dividend—to a level which looks rational in terms of cash-flow point of view. I believe that as the cash flow improves, we will be back to our old policy of the fact that if you have a use of cash, HCL will use the cash. But excess cash—we don’t want to be in the treasury business.