Dear Shareholder,

FY24 was a year of industry-leading growth at HCLTech despite the global macroeconomic and geopolitical headwinds. Our differentiated portfolio across services and products allowed us to sustain the growth momentum by being a digital partner of choice for global enterprises in our chosen markets of operations.

We closed the year with revenue of $13.3 billion, up 5.4% YoY. Our revenue growth rate was the highest among the tier 1 global IT services companies and our EBIT margin for the year was 18.2%. Our free cashflow continued to be healthy at $2.6 billion, a growth of 27.7% YoY. It is a testament to the depth and breadth of our offerings as well as strong and impactful execution as we continue to focus sharply on always being relevant to our clients.

Our services business saw good growth of 5.4% YoY in constant currency, led by 12.1% YoY growth in Financial Services and 9.8% YoY increase in the Manufacturing verticals. Digital revenue in constant currency grew by 5.3% and now contributes 37.3% of the overall services revenue. Cloud and Cybersecurity were key contributors to the healthy growth in digital revenue. We added three clients in the $100M+ category, six in the $20M+ category, 25 in the $10M+ category and 20 in the $5M+ category during the year. Our software revenue grew by 2.3% in constant currency as the business sustained its $1 billion+ annual run rate, driven by subscription and support revenue, which grew 400 basis points YoY. We have already recovered 90% of our investment in the software business and remain bullish on the growth prospects ahead.

Our deal pipeline continues to be healthy and diversified. During FY24, the total contract value of new deals won (excluding renewals) was at an all-time high of $9.8 billion, representing a growth of 10% YoY. We won 73 new large deals — 36 in services and 37 in software. The highlight of the year was our strategic partnership with Verizon Business, which brings together Verizon's networking power, solutioning and scale with HCLTech's market- leading managed services capabilities to serve global businesses. The Verizon deal win marked a major milestone as the largest services deal in HCLTech's history and underscored our ability to engineer solutions and execute at scale.

We are a global leader in engineering services, and in FY24 we added to our capabilities with the acquisition of ASAP Group, a Germany-based automotive engineering services provider. With the addition of technology and talent, ASAP will strengthen HCLTech's presence in the autonomous driving, e-mobility and connectivity segments.

We continue to stay focused on our objective of delivering top quartile Total Shareholder Return. On the back of this well-rounded performance, the company paid a full-year dividend of ₹52 per share. This represented a payout ratio of 89.6% for the full year in line with our stated capital allocation policy. The company's market capitalization crossed the $50 billion mark during the year.

HCLTech's industry-leading performance is also reflected in the wide range of market recognitions we've received. We won six ISG Star of Excellence Awards 2023, the highest in the industry, based on feedback from over 2,250 unique customer evaluations. HCLTech had an impressive CX score of 82.3 vs industry average of 68.9 as per the customer evaluation. Clients across regions, industries and business roles expressed significantly higher levels of satisfaction with HCLTech's services than other top providers.

In addition, HCLTech was rated as the fastest-growing IT services brand among the top 10 IT companies globally, as per the 2024 Brand Finance Global 500 and IT Services Top 25 Report. This is a validation of the success of our brand transformation with the unique positioning of Supercharging Progress.

Our revenue growth rate was the highest among the tier 1 global IT services companies and our EBIT margin for the year was 18.2%. Our free cashflow continued to be healthy at $2.6 billion, a growth of 27.7% YoY. It is a testament to the depth and breadth of our offerings as well as strong and impactful execution as we continue to focus sharply on always being relevant to our clients.”

Our people are the biggest enablers of our performance, and we continue to double down on our objective of being the employer of choice in professional services across key geographies. We closed FY24 with 227,481 people, an increase of 1,537 while onboarding 12,141 freshers. Our employee attrition rate came in at 12.4%, which is among the lowest in the industry. It is also pertinent to note that HCLTech has had the most stable leadership team among its peers and it is something our clients value.

Driven by innovative people policies, HCLTech was certified as a Top Employer in 26 countries, with a number one ranking in 15 countries. Our employee value proposition “Find Your Spark” is helping us establish a clear differentiation by offering our people a vibrant and inclusive work culture and opportunities to learn and grow on a global scale. We made significant investments in training and upskilling of employees that resulted in 160,000+ unique employees trained and certified across a variety of in-demand skills.

We remain steadfast in our commitment to grow our business sustainably and responsibly. During FY24, we replenished 32 times more water than we consumed across our India operations. HCLTech received A- leadership rating for climate change initiatives from CDP, a global non-profit organization. We received AA rating in the MSCI ESG Index, and we were included in the S&P Sustainability Yearbook for the second year in a row.

We continue to transform communities through a wide range of initiatives. In India, HCLFoundation has impacted over 6.2 million lives since its inception through interventions across environment, education and healthcare. It has planted 2.1 million saplings and harvested 81 billion liters of water to support communities and the environment. This year, we significantly scaled up our community initiatives beyond India with the launch of HCLTech Grant Americas, committing $5 million over five years to support non-profit organizations focused on combating climate change and restoring ecosystems and biodiversity across the Americas.

HCLTech has always set high standards of corporate governance and believes in doing business the right way. It was a proud moment for us as Ethisphere recognized HCLTech as one of the World’s Most Ethical Companies 2024.

We remain steadfast in our commitment to grow our business sustainably and responsibly. During FY24, we replenished 32 times more water than we consumed across our India operations. HCLTech received A- leadership rating for climate change initiatives from CDP, a global non- profit organization.”

Looking at the year ahead

We expect the demand environment for IT services to remain unchanged, with discretionary spends by clients staying soft. But equally, there are opportunities for growth led by emerging technologies such as GenAI and surround areas such as cloud, data and cybersecurity. With our comprehensive portfolio across digital, engineering, cloud, AI and software, we are well placed to leverage the market opportunities.

When it comes to GenAI, we see the market moving toward real-world B2C and B2B use cases being deployed at scale. HCLTech’s full-stack technology play and core engineering DNA positions us uniquely to help clients unlock the full potential of GenAI. Our approach to GenAI is grounded in the “art of possible” to enable clients to deploy practical technology solutions.

HCLTech’s full-stack technology play and core engineering DNA positions us uniquely to help clients unlock the full potential of GenAI. Our approach to GenAI is grounded in the “art of possible” to enable clients to deploy practical technology solutions.”

We have invested aggressively in GenAI capabilities, innovation labs and are partnering with top hyperscalers to build solutions. Over 200 proofs of concept have already been delivered to clients. We’ve launched HCLTech AI ForceTM, an innovative GenAI platform that accelerates time-to-value by transforming the software development and engineering lifecycle. Importantly, we are upskilling our people in GenAI through a range of advanced learning programs. In FY25, we aim to upskill 50,000+ employees in GenAI and adjacent capabilities. This technology capability is backed by a robust global delivery model as we continue to scale up our Nearshore and New Vistas locations.

To conclude, we remain optimistic and committed to our purpose of bringing together the best of technology and our people to supercharge progress. In the aforementioned ISG survey, a leading global company said, "HCLTech is really a business partner for us, thinking together, finding adequate solutions to any challenges or changes we might encounter." We remain obsessed with staying relevant to our clients in any business environment.

I would like to thank our Board of Directors for their invaluable guidance and mentorship and look forward to your continued support.

Sincerely,

C Vijayakumar