HCL Technologies

Quarterly Results

First Quarter FY 2OO7-O8

Investor Release
N o i d a, N C R, I n d i a, October 16, 2 0 0 7

HCL Tech Q1 revenues up 43% and net income up 42%

LTM revenues exceed Rs. 6300 crores (US $ 1.5 billion)

Third consecutive quarter with decreasing attrition
CQGR of 9.3% for last four quarters

Results Highlights 2

Overview 3

Business Highlights 4

Financials 8

Segment wise Profitability 11

Revenue Analysis 13

Client Metrics 14

Operational Metrics - Core Software 15

Employee Metrics 16

Facility Details 17

Financials in INR as per convenience translation 18

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 Results Highlights
Highlights for the Quarter (US $)
Revenues at US $ 429.0 mn; up 42.8% YoY
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LTM (last twelve months) revenues at US $ 1.5 bn
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Net Income at US $ 77.4 mn; up 42.1% YoY
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The last six quarters have shown a sequential growth of above 8% (8.3%, 10.3%,
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10.2%, 9.5%, 9.2% and 8.4%)
Interim dividend of 100%, the 19th consecutive quarterly dividend
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3625 net additions in headcount, taking employee strength to 45,642
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Highlights for the Quarter (INR)

Revenues at Rs. 1709.2 cr, up 23.9% YoY
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LTM revenues at Rs. 6363.4 cr
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Net Income at Rs. 308.4 cr; up 23.3% YoY
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 Overview
The quarter under review saw HCL Technologies Ltd. ('HCL') continue its accelerated momentum owing
to the transformation strategy and focus on uncontested market spaces through new service
offerings, deepening customer relationships, and new partnerships.

“HCL's ability to anticipate change and adapt to the changing market dynamics ahead of time has stood
us in good stead. We will continue to have a value centric approach to business, focusing on Trust,
Transparency and Flexibility in engaging with customers. We have done well in maintaining and
growing our large existing relationships besides winning new transformational deals, which has brought
in consistency in our growth track”, said Shiv Nadar, Chairman and Chief Strategy Officer, HCL
Technologies.

“Our unique approach to market and people, continues to impact the business results. Over the past 6
quarters, our revenues have been consistently growing over 8% with a CQGR of 9.3% YoY. HCL’s
success in posting a 43% YoY revenue growth and its ability in holding margins on a YoY basis despite a
12-13% appreciation of rupee, demonstrates the growing robustness of its business model and its ability
to respond to environmental challenges from time to time. Our Employee First focus has resulted in this
being the third consecutive quarter to show declining attrition. ”, said Vineet Nayar, Chief Executive
Officer, HCL Technologies.

“HCL BPO sustained profitable growth during this quarter with a 43.6% YoY growth of revenue and
94.3% YoY increase in income from operations. The people centric processes institutionalized by
People CMM Level 3 certification have resulted in the lowest attrition during this quarter in the last three
years. We have been able to increase our margins inspite of difficult market conditions,” said Ranjit
Narasimhan, President & CEO, HCL Technologies-BPO Services.

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 Business Highlights
In the last five quarters, HCL has grown significantly, ramping up in both revenues and profitability, making it one of
the fastest growing IT service providers. This growth in the last four quarters is illustrated in the graphs below:

QoQ Revenue Growth Rate -% YoY Revenue Growth Rate -%

12% 44.5%
11.0% 10.3% 45.3% 42.8%
45% 41.4%
9.4% 44.8%
10% 9.5% 9.3% 37.2% 44.1%
40% 41.4% 42.7%
10.3% 10.2%
9.2% 35%
8% 8.2% 36.2%
QoQ growth %

8.4%

Y oY growth %
30%

6% 25%

20%
4%
15%

10%
2%
5%
0% 0%
Sep'06 Dec'06 Mar'07 Jun'07 Sep'07 Sep'06 Dec'06 Mar'07 Jun'07 Sep'07

HCLT HCLT IT Services HCLT HCLT IT Services

YoY EBIT Growth Rate - %

70%
HCL Consolidated - YoY PAT Growth Rate

60% 56.7% 140.0%

136.0%
45.7% 120.0%
50%
Y oY growth %

41.3% 50.8% 39.5% 40.0%

100.0%
h%

40%
76.3%
YoY growth

41.4% 80.0% 60.8%

30% 36.2%
33.5%
33.1% 60.0%
43.2%
20%
40.0%
42.1%
10% 20.0%

0% 0.0%
Sep'06 Dec'06 Mar'07 Jun'07 Sep'07 Sep'06 Dec’06 Mar'07 Jun'07 Sep'07
Quarter ending
HCLT HCLT IT Services
HCLT

Revenue - Employee Growth Trend Revenue - Employee Growth Trend

50% 45.3%
44.1% 44.8%
41.4% 42.8% 45%
45% 42.7%
38.7% 44.5%
40%
40% 41.4%
35%
35.7%
30% 36.2% 36.0% 37.2%
34.1% 35%
25% 31.7%
28.8% 29.9%
25.2% 32.1% 32.1%
20% 30%
15%
10% 25%

5%
20%
0% Sep'06 Dec'06 Mar'07 Jun'07 Sep'07
Sep'06 Dec'06 Mar'07 Jun'07 Sep'07

HCLT Revenue growth HCLT Employee growth IT Services Revenue Growth IT Services Employee Growth

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 Key Catalysts for Growth
Among geographies, Australia – New Zealand (ANZ) and Europe continue to be the trailblazers;
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reducing dependence on the US
Among Service Lines, Infrastructure services, Engineering & R&D services (ERS), BPO and Custom
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Application Services witnessed accelerated growth, reaffirming HCL’s dominant market position
Continuing the trend of the last two quarters, the fastest growth among verticals, was recorded in Life
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Sciences, Aerospace & Automotive and Financial services
The traction from existing larger customers maintains its momentum in this quarter as well, which is
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reflected in the company average growth rate

Particulars Segment (US $ ) Growth CQGR YoY

(Last 4 Qtrs)

Consolidated For the Company 9.3% 42.8%

Geography ANZ 18.8% 99.2%

Europe 11.3% 53.4%

Non-US 12.8% 61.7%

Service Offering Infrastructure Services 12.9% 62.7%

Engineering and R&D Services 10.2% 47.4%

BPO Services 9.4% 43.6%

Custom Application Services 8.7% 39.7%

Industry Life Sciences 20.8% 112.9%

Aerospace & Automotive 19.0% 100.7%

Financial Services 15.9% 80.1%

Telecom 8.2% 37.3%

Clients Top 5 (LTM) 8.6% 38.9%

Top 10 (LTM) 9.3% 42.7%

Top 20 (LTM) 9.8% 45.6%

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 Multi-service; Multi-year; Multi-million dollar deals drive growth
The momentum in inking large transformational deals that began in 2005 continues this quarter. HCL
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signed an integrated services US $ 250 mn+ deal, making it the third US $ 200 mn + deal signed
within a span of 24 months
HCL also signed a multi-service, multi-year, multi-million dollar deal this quarter with Hercules Inc., a
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leading manufacturer and marketer of specialty chemicals
HCL Technologies continues to demonstrate leadership in execution experience with the large
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transformational engagements the company started in the last two years (Autodesk, DSGi, Teradyne,
Skandia, etc.), that have moved in a steady state and are beginning the subsequent phases of IT
Transformation
Transformation @ HCL
HCL is organizing the third chapter of the Global Customer Meet - Explore & Transform, the
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world’s first conclave of its kind on “Transformation”on Oct 29-30, 2007; where over 400 thought
leaders and CIOs from around the world are expected to congregate and debate on the most topical
issues exploring the impact of Collaborative Transformation on the business of technology
HCL is nearing another milestone in creating a unique identity in the Indian technology landscape.
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Besides being the only technology major that is headquartered in North India, HCL will inaugurate its
new technology hub on Nov 1, 2007, which we believe will be one of the finest in the country with
intelligent, green buildings at par with the best in the world - and the first of its kind in North India.
Hon’ble former President, Dr. Abdul Kalam; Hon’ble Minister Mr. P Chidambaram; Hon’ble Minister
Mr. Kamal Nath; along with many senior dignitaries from the government, academia, industry and
media are expected at this momentous event
HCL organised its Analyst Day in New York in Sept 2007 that was unique and transformational in
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having key customers present HCL’s service offerings to over 120 industry analysts. This format is a
first in the industry and was hugely appreciated by the analyst community, as it demonstrates HCL’s
deep customer connects and the intent of the company to constantly innovate towards business
transformation
Recognitions
HCL Technologies is a regional partner with the World Economic Forum this year. Vineet Nayar,
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President – HCL Technologies, was one of the plenary speakers in the Summer Davos event held in
Dalian from September 6-8, 2007
Ovum, one of the leading analysts, has noted that “HCL is furthest on the road when it comes to
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moving away from pure application development and maintenance (ADM) legacy, and into a wider,
more balanced, multi-tower service line including infrastructure services and BPO, which many of the
other Indian players are vigorously pursuing at present. It also has a selection of good full outsourcing
client references, which many of its Indian peers are craving
The Economist notes that “HCL is ahead of its competitors for Japanese business”
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Sun Microsystems recognized HCL for Delivering Superior Quality and named Meritorious
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Performance Supplier for 2007, for delivering superior technology, quality service and excellent
value to Sun’s customers
Forrester cited HCL ISD as a ‘Leader’ in European Remote Infrastructure Management, making it the
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only Indian Company in that market

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 Core Software Services Highlights
Our strategy of developing service offerings and build domain expertise in select verticals continues
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to pay off. HCL’s Life Sciences and Healthcare practice that has been showing impressive growth
over the last year continues to accelerate with a 113% YoY growth, strengthened by the opening of
new accounts and initiating work in the diagnotics and CRO space in addition to our leadership in the
medical devices space
Oracle Partner Network recognizes HCL Technologies as Certified Advantage Partner (CAP), the
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highest of three partnership levels, awarded to partners who have consistently demonstrated the
highest level of competency and commitment to Oracle
Hyperlink and HCL enter into a strategic partnership for a joint go-to-market in Middle East on the
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Oracle Applications Portfolios
?SAP ANZ and HCL Technologies partner to deliver innovative SAP solutions by integrating SAP with
the clients’ IT infrastructure and HCL’s BPO services. The partnership will support customers’
ongoing business innovations by sharing and leveraging HCL’s best practice experience and IP
gained during the ten-year partnership between the two companies. The focus will be on the delivery
of enterprise Services Oriented Architecture (SOA) using the SAP NetWeaver product set
HCL achieved NABL ISO 17025 Accreditation for the in-house EMC/EMI lab. This widens HCL scope
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of H/W design services to cover full compliance testing and help provide product companies the
complete spectrum of services for their product lifecycle
Revenues for Q1 at US $ 309.1 mn, up 39.1 % YoY
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EBITDA (before non cash charge) for Q1 at US $ 66.1 mn, up 33.7% YoY
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EBIT at US $ 55.6 mn, up 30.1% YoY
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Infrastructure Services Highlights
HCL-AwalNet announce an ecosystem engagement to offer Integrated IT Management Services to
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Middle East enterprises
HCL announces Infrastructure Management Outsourcing contract with Hercules Inc., a leading
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manufacturer and marketer of specialty chemicals
HCL ISD emerges as the only Indian company cited as a ‘Leader’ in European Remote Infrastructure
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Management by Forrester
Ovum declares HCL as a Leader in IT Infrastructure Services
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Revenues for Q1 at US $ 64.7 mn, up 62.9 % YoY
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EBITDA (before non cash charge) for Q1 at US $ 10.9 mn, up 55.5% YoY
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EBIT at US $ 7.7 mn, up 64.9% YoY
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BPO Services Highlights

HCL BPO has been ranked 3rd by Blackbook of Outsourcing
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HCL BPO was judged as the most preferred third-party BPO operator in India by Janney’s
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Outsourcing Newsletter
Revenues for Q1 at US $ 55.1 mn, up 43.6 % YoY
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EBITDA (before non cash charge) for Q1 at US $ 14.3 mn, up 66.3% YoY
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EBIT at US $ 10.9 mn, up 94.3% YoY
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 Financials
Un-audited Financial results for the quarter ended 30th September 2007

Consolidated Income Statement

Figures in US $ million

Income Statement Quarter ending… Growth

30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 300.4 395.7 429.0 42.8% 8.4%

Direct Costs 189.6 246.4 270.2
Gross Profits 110.8 149.3 158.9 43.4% 6.4%
SG & A 45.7 64.0 67.5
EBITDA 65.1 85.3 91.3 40.3% 7.1%
Depreciation & Amortisation 12.1 17.0 17.2
EBIT 53.0 68.3 74.1 40.0% 8.6%
Foreign Exchange Gains / (loss) 0.3 61.5 3.6 -95%
Other Income, net 6.1 9.1 9.0
Provision for Tax 4.8 19.1 8.7
Share from Equity Investment /of
Minority Interest 0.0 (0.2) (0.7)
Net Income 54.5 119.5 77.4 42.1% -35.2%

Gross Margin 36.9% 37.7% 37.0%

EBITDA Margin 21.7% 21.6% 21.3%
EBIT Margin 17.6% 17.3% 17.3%
Net Income Margin 18.1% 30.2% 18.0%

Earnings Per Share (EPS) - Annualized

Basic – in USD 0.34 0.72 0.47
Diluted – in USD 0.32 0.70 0.45
“Weighted average number of Shares
used in computing EPS”
Basic 647,428,197 663,683,116 663,710,658
Diluted 676,475,235 683,481,119 681,021,338

Note:
A 1) During the quarter ended 30 June, 2007 INR appreciated against USD by 6.4% resulting in abnormal exchange
gain on outstanding forward covers of $1,155 mn.
A 2) Effective July 1, 2007 the Company has designated forward contracts associated with forecasted transactions as cash
flow hedges.
Consequent to such designation, change in fair value of such contracts as calculated from July 2007 or the date of
contract, whichever is later, amounting to US$ 55.7 mn has been accounted in Balance Sheet as “Other Comprehensive
Income” (OCI) appearing as part of shareholders equity

B) Unrealized gains on treasury investments of US$ 20.8 mn as on Sep 30, 2007 (US$ 19.5 mn as of Jun 30, 2007 and
US$ 11.7 mn as of Sep 30, 2006) are not part of reported net income

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C) Non cash employee stock options charge computed under FAS 123R, are not part of reported net income: Details as under:

Particulars (in US $ mn) 30-Sep-06 30-Jun-07 30-Sep-07

Options at market price 2.5 1.9 1.5

Options at less than market price 2.1 3.6 4.7

Total 4.6 5.5 6.2

Tax benefit 0.2 0.7 0.5

Total (net of tax) 4.4 4.9 5.7

Outstanding Options (in equivalent no of shares) 30-Sep-06 30-Jun-07 30-Sep-07

Options at market price 54,032,452 34,560,572 32,833,216

Options at less than market price 9,686,000 14,384,656 14,045,200

These options will vest in tranches from year 2007 to 2011

Consolidated Balance Sheet

Figures in US $ million

Particulars As on

30-Jun-07 30-Sep-07

Assets

a) Cash & Cash Equivalents 88.0 82.3

b) Account Receivables, net 301.4 364.2

c) Treasury Investments 472.9 521.6

d) Other Current Assets 174.7 265.7

A) Total Current Assets (a+b+c+d) 1037.0 1233.7

B) Property and Equipments, net 257.6 274.5

C) Intangible Assets, net 197.9 200.7

D) Investment in Equity Investee 2.4 2.2

E) Other Assets 57.6 54.4

Total Assets (A+B+C+D+E) 1552.5 1765.6

Liabilities & Stockholders' Equity

e) Total Current Liabilities 286.2 337.6

f) Long-Term Debt 0.0 0.0

g) Other Liabilities 31.7 28.3

F) Total Liabilities (e+f+g) 317.9 365.9

G) Minority Interest 3.6 4.1

H) Total Stockholders Equity 1231.0 1395.5

Total Liabilities and Stockholders

Equity (F+G+H) 1552.5 1765.6

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 Consolidated Cash Flow Statement
Figures in US $ million

Particulars Three months ended

30-Sep-07

CASH FLOWS FROM OPERATING ACTIVITIES

Net income 77.4
Adjustments to Reconcile Net Income to Net Cash provided by
Operating Activities
Depreciation and Amortization 17.2
Loss / (Profit) on Sale of Investment Securities (6.9)
Others 1.6
Changes in Assets and Liabilities, net
Accounts Receivable (58.3)
Other Assets (29.7)
Current Liabilities 31.0
Net Cash Provided by Operating Activities 32.3
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Property and Equipment (net) (28.2)
(Purchase) / Sale of Investments (33.6)
Others
Net Cash used in Investing Activities (61.8)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Issuance of Employees Stock Options 0.3
Dividend
Proceeds from Long Term Loans 25.8
Net Cash Provided by (used in) Financing Activities 26.1
Effect of Exchange Rate on Cash and Cash Equivalents (2.4)
Net increase/ (decrease) in Cash and Cash Equivalents (3.3)
CASH AND CASH EQUIVALENTS
Beginning of the period 88.0
End of the period 82.3

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 Segment wise Profitability
A. Consolidated IT Services (Core software [A1] & Infrastructure services [A2])
Figures in US $ million

Quarter ended Growth

Particulars 30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 262.0 341.7 373.9 42.7% 9.4%

Direct Costs 164.7 213.7 236.3

Gross Profits 97.3 128.1 137.6 41.4% 7.4%

SG & A 40.8 56.7 60.6

EBITDA 56.5 71.4 77.0 36.4% 7.9%

Depreciation & Amortisation 9.1 13.4 13.8

EBIT 47.3 57.9 63.2 33.5% 9.1%

Gross Margin 37.1 % 37.5 % 36.8%

EBITDA Margin 21.5 % 20.9 % 20.6%
EBIT Margin 18.1 % 17.0 % 16.9%

B. BPO Services
Figures in US $ million

Quarter ended Growth

Particulars 30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 38.4 54.0 55.1 43.6% 2.2%

Direct Costs 24.9 32.8 33.8

Gross Profits 13.5 21.2 21.3 58.0% 0.4%

SG & A 4.9 7.3 7.0

EBITDA 8.6 13.9 14.3 66.3% 3.2%

Depreciation & Amortisation 3.0 3.6 3.4

EBIT 5.6 10.3 10.9 94.3% 5.6%

Gross Margin 35.2% 39.3% 38.6%

EBITDA Margin 22.4% 25.7% 26.0%

EBIT Margin 14.6% 19.1% 19.8%

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A1. Core Software Services

Figures in US $ million

Quarter ended Growth %

Particulars 30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 222.3 282.4 309.1 39.1% 9.5%

Direct Costs 138.6 171.5 190.7

Gross Profits 83.7 110.9 118.4 41.5% 6.8%

SG & A 34.2 49.4 52.3

EBITDA 49.5 61.5 66.1 33.7% 7.5%

Depreciation & Amortisation 6.8 10.2 10.5

EBIT 42.7 51.3 55.6 30.1% 8.4%

Gross Margin 37.7% 39.3% 38.3%

EBITDA Margin 22.3% 21.8% 21.4%

EBIT Margin 19.2% 18.2% 18.0%

A2. Infrastructure Services

Figures in US $ million

Quarter ended Growth %

30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 39.8 59.3 64.7 62.9% 9.1%

Direct Costs 26.1 42.2 45.6

Gross Profits 13.6 17.2 19.2 40.7% 11.7%

SG & A 6.6 7.3 8.3

EBITDA 7.0 9.9 10.9 55.5% 10.1%

Depreciation & Amortisation 2.4 3.2 3.2

EBIT 4.6 6.7 7.7 64.9% 14.9%

Gross Margin 34.2% 28.9% 29.6%

EBITDA Margin 17.6% 16.7% 16.8%

EBIT Margin 11.6% 11.2% 11.8%

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 Revenue Analysis
Geographic Mix (Quarter ended) 30-Sep-06 30-Jun-07 30-Sep-07 LTM

US 59.6% 54.2% 54.2% 54.9%

Europe 28.6% 30.5% 30.8% 30.2%
Asia Pacific 11.8% 15.3% 15.0% 14.9%

Service Offering Mix (Quarter ended) 30-Sep-06 30-Jun-07 30-Sep-07 LTM

Enterprise Application Services 13.7% 12.0% 11.8% 12.4%

Engineering and R&D Services 24.0% 23.9% 24.8% 24.1%
Custom Application (Industry Solutions) 36.2% 35.5% 35.5% 35.8%
Infrastructure Services 13.3% 15.0% 15.1% 14.5%
BPO Services 12.8% 13.6% 12.8% 13.2%

Revenue by Contract Type (Qtr ended) 30-Sep-06 30-Jun-07 30-Sep-07

IT Services

Time & Material (T&M) 70.8% 70.0% 68.8%

Fixed Price Projects 29.2% 30.0% 31.2%

Revenue by Vertical (Quarter ended) 30-Sep-06 30-Jun-07 30-Sep-07

Financial Services 22.8% 28.7% 28.7%

Hi-tech - Manufacturing 31.3% 28.7% 30.0%
Telecom 16.9% 17.2% 16.3%
Retail 12.0% 9.2% 8.7%
Media Publishing & Entertainment (MPE) 5.9% 5.6% 5.5%
Life Sciences 3.5% 4.9% 5.2%
Others 7.6% 5.7% 5.6%

Rupee / US Dollar Rate 30-Sep-06 30-Jun-07 30-Sep-07

Quarter Ended 45.92 40.70 39.84

Average for the Quarter 46.34 40.84 40.36

“LTM” - Last Twelve Months

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 Client Metrics
Client Data (LTM) 30-Sep-06 30-Jun-07 30-Sep-07 QoQ Increase

Number of Clients
Active Client Relationship 219 242 244 2
New Client Relationship 24 24 19
Multi Service Delivery Clients 40 53 55 2

Number of Million Dollar Clients (LTM) 30-Sep-06 30-Jun-07 30-Sep-07 QoQ YoY
Increase Increase

100 Million dollar + 1 2 2 0 1

50 Million dollar + 2 3 3 0 1
40 Million dollar + 3 4 4 0 1
30 Million dollar + 4 7 8 1 4
20 Million dollar + 8 13 13 0 5
10 Million dollar + 18 26 27 1 9
5 Million dollar + 41 52 55 3 14
1 Million dollar + 143 156 166 10 23

Client Contribution to Revenue (LTM) 30-Sep-06 30-Jun-07 30-Sep-07 QoQ growth

Top 5 Clients 28.7% 28.4% 27.8% 7.2%

Top 10 Clients 38.2% 38.2% 38.0% 8.7%
Top 20 Clients 49.9% 51.1% 50.7% 8.4%

Client Business - (LTM) 30-Sep-06 30-Jun-07 30-Sep-07

Repeat Business - Consolidated 87.5% 94.0% 94.3%

Days Sales Outstanding 77 69 77

“LTM” - Last Twelve Months

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 Operational Metrics - Core Software
Core Software Services (Quarter Ended) 30-Sep-06 30-Jun-07 30-Sep-07

Efforts

Offshore 73.1% 72.6% 73.9%

Onsite 26.9% 27.4% 26.1%
Revenue

Offshore 48.2% 47.9% 49.4%

Onsite 51.8% 52.1% 50.6%
Utilization

Offshore - Including trainees 67.9% 71.1% 69.2%

Offshore - Excluding trainees 77.7% 76.7% 77.2%
Onsite 92.2% 95.6% 95.8%

Effort (Man Months) 30-Sep-06 30-Jun-07 30-Sep-07

Efforts Billed - Offshore 31,593 37,129 41,187

Efforts Billed – Onsite 11,620 14,033 14,567
Total Billed Efforts 43,214 51,162 55,754

Not Billed 10,055 11,943 12,813

Trainee 5,853 3,774 6,186
Not Billed (including trainees) 15,908 15,717 18,999

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 Employee Metrics
Manpower Details 30-Sep-06 30-Jun-07 30-Sep-07

Total Employee Count 36,452 42,017 45,642

Core Software – Total 21,943 26,326 29,157

Technical 19,657 23,160 25,667

Support 2,286 3,166 3,490
Gross addition 2,752 3,991 3,735
Net addition 1,611 2,530 2,831
Gross lateral employee addition 1,684 2,326 2,523
Attrition (LTM) * 16.5% 17.2% 16.5%
Infrastructure Services - Total 3,397 4,439 5,223

Technical 2,867 3,794 4,543

Support 530 645 680
Gross addition 614 747 912
Net addition 446 440 784
Gross lateral employee addition 325 678 752
Attrition (LTM) * 13.1% 17.3% 15.9%
Attrition (LTM)* - IT Services
(Core Software + Infrastructure Services) 16.1% 17.2% 16.4%
BPO Services - Total 11,112 11,252 11,262

Offshore 9,081 8,623 8,572

Onsite 1,259 1,589 1,648
Support 772 1,040 1,042
Gross addition 3,429 1,357 2,020
Net addition 1,769 (1,102) 10
Gross lateral employee addition 1,525 375 706
Offshore Attrition – Quarterly 18.5% 17.5% 14.2%
Offshore Attrition - Quarterly
(excluding attrition of joinees less than 6 months) 7.5% 7.7% 7.8%

* Excludes involuntary attrition

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 Facility Details
As of 30 September 2007 Completed Work in Progress Land Available
Built Up area Built Up area for expansion -
Delivery Locations No. of seats No. of seats in acres
(Sq. ft.) (Sq. ft.)

Gurgaon 336,300 3,600 25,000 300

Noida (NCR) 1,283,800 14,900 607,200 4,900 31.0
Chennai 1,894,700 16,300 1,188,000 10,000 27.0
Bangalore 864,900 7,800 518,000 4,400 13.0
Mumbai 41,500 400
Kolkatta 35,600 300
Hyderabad 56,300 600
Northern Ireland (NI) 100,000 1,400 -
Manesar (Haryana) - 10.0
Total 4,613,100 45,300 2,338,200 19,600 81.0

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 Financials in INR as per convenience translation
(The financials in INR are based on a convenience translation using the closing rate as of the last day of the
quarter: US $ 1 = Rs. 39.84 for the quarter ending 30 Sep, 07, US $ 1 = Rs. 40.70 for quarter ending 30 Jun, 2007;
US $ 1 = Rs. 45.92 for quarter ending 30 Sep, 2006)

Un-audited financial results for the quarter ended 30th Sep, 2007 drawn under US GAAP
Consolidated Income Statement
Figures in rupees crore

Income Statement Quarter ending… Growth

30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 1379.5 1612.0 1709.2 23.9% 6.0%

Direct Costs 870.8 1003.9 1076.3
Gross Profits 508.7 608.1 632.9 24.4% 4.1%
SG & A 209.8 260.7 269.0
EBITDA 298.8 347.4 363.9 21.7% 4.7%
Depreciation & Amortisation 55.7 69.3 68.6
EBIT 243.2 278.1 295.3 21.5% 6.2%
Foreign Exchange Gains / (loss) 1.2 250.4 14.5 -94.2%
Other Income, net 27.8 36.9 35.9
Provision for Tax 21.9 77.7 34.6
Share from Equity Investment /of
Minority Interest (0.1) (1.0) (2.8)
Net Income 250.2 486.7 308.4 23.2% -36.6%

Gross Margin 36.9% 37.7% 37.0%

EBITDA Margin 21.7% 21.6% 21.3%
EBIT Margin 17.6% 17.3% 17.3%
Net Income Margin 18.1% 30.2% 18.0%

Earnings Per Share (EPS) - Annualized

Basic – in Rupees (FV Rs. 2/-) 15.5 29.3 18.6
Diluted – in Rupees (FV Rs. 2/-) 14.8 28.5 18.1
“Weighted average number of Shares
used in computing EPS”
Basic 647,428,197 663,683,116 663,710,658
Diluted 676,475,235 683,481,119 681,021,338

Note:
A 1) During the quarter ended 30 June, 2007 INR appreciated against USD by 6.4% resulting in abnormal exchange gain
on outstanding forward covers of Rs. 4,701 crores.
A 2) Effective July 1, 2007 the Company has designated forward contracts associated with forecasted transactions as cash
flow hedges.
Consequent to such designation, change in fair value of such contracts as calculated from July 2007 or the date of
contract, whichever is later, amounting to Rs. 225 crores has been accounted in Balance Sheet as “Other Comprehensive
Income” (OCI) appearing as part of shareholders equity

B) Unrealized gains on treasury investments of Rs. 82.9 crores as on Sep 30, 2007 (Rs. 79.6 crores as of Jun 30, 2007 and
Rs. 53.7 crores as of Sep 30, 2006) are not part of reported net income

18 www.hcltech.com/Investors
C) Non cash employee stock options charge computed under FAS 123R, are not part of reported net income: Details as under:

Particulars (in Rs crores) 30-Sep-06 30-Jun-07 30-Sep-07

Options at market price 11.2 7.9 6.0

Options at less than market price 9.6 14.7 18.7

Total 20.9 22.5 24.7

Tax benefit 0.7 2.6 2.0

Total (net of tax) 20.2 19.8 22.7

Outstanding Options (in equivalent no of shares) 30-Sep-06 30-Jun-07 30-Sep-07

Options at market price 54,032,452 34,560,572 32,833,216

Options at less than market price 9,686,000 14,384,656 14,045,200

These options will vest in tranches from year 2007 to 2011

Consolidated Balance Sheet

Figures in Rs crores

Particulars As on

30-Jun-07 30-Sep-07

Assets

a. Cash and Cash Equivalents 358.7 327.7

b. Accounts Receivable, net 1227.8 1451.0

c. Treasury Investments 1926.4 2077.9

d. Other Current Assets 711.7 1058.6

A. Total current assets (a+b+c+d) 4224.6 4915.2

B. Property and Equipment, net 1049.5 1093.8

C. Intangible Assets, net 806.1 799.7

D) Investment in Equity Investee 9.6 8.6

E. Other Assets 234.5 216.8

Total assets (A+B+C+D+E) 6324.7 7034.0

Liabilities and Stockholders' Equity

e. Total Current Liabilities 1166.0 1345.1

g. Long -Term Debt 0.0 0.0

h. Other Liabilities 129.2 112.8

F. Total Liabilities (e+f+g) 1295.2 1457.9

G. Minority Interest 14.5 16.4

H. Total Stockholders equity 5015.0 5559.7

Total liabilities and stockholders equity

(F+G+H) 6324.7 7034.0

19 www.hcltech.com/Investors
 Segment wise Profitability
A. Consolidated IT Services (Core software [A1] & Infrastructure services [A2])
Figures in Rs crores

Quarter ended Growth

Particulars 30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 1203.1 1392.2 1489.5 23.8% 7.0%

Direct Costs 756.4 870.5 941.5

Gross Profits 446.8 521.7 548.0 22.7% 5.1%

SG & A 187.5 230.8 241.2

EBITDA 259.3 290.9 306.8 18.3% 5.5%

Depreciation & Amortisation 41.9 54.8 54.9

EBIT 217.4 236.1 251.9 15.9% 6.7%

Gross Margin 37.1% 37.5% 36.8%

EBITDA Margin 21.5% 20.9% 20.6%
EBIT Margin 18.1% 17.0% 16.9%

B. BPO Services
Figures in Rs crores

Quarter ended Growth

Particulars 30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 176.3 219.8 219.8 24.6% 0.0%

Direct Costs 114.5 133.4 134.8

Gross Profits 61.9 86.4 84.8 37.1% -1.8%

SG & A 22.3 29.8 27.7

EBITDA 39.6 56.6 57.1 44.3% 0.9%

Depreciation & Amortisation 13.8 14.5 13.7

EBIT 25.7 42.1 43.4 68.6% 3.2%

Gross Margin 35.1% 39.3% 38.6%

EBITDA Margin 22.5% 25.7% 26.0%

EBIT Margin 14.6% 19.1% 19.8%

20 www.hcltech.com/Investors
A1. Core Software Services
Figures in Rs crores

Quarter ended Growth

Particulars 30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 1020.6 1150.5 1231.6 20.7% 7.0%

Direct Costs 636.4 698.7 759.9

Gross Profits 384.2 451.7 471.7 22.8% 4.4%

SG & A 157.1 201.2 208.2

EBITDA 227.1 250.5 263.4 16.0% 5.1%

Depreciation & Amortisation 31.0 41.6 42.0

EBIT 196.1 208.9 221.4 12.9% 6.0%

Gross Margin 37.6% 39.3% 38.3%

EBITDA Margin 22.3% 21.8% 21.4%

EBIT Margin 19.2% 18.2% 18.0%

A2. Infrastructure Services

Figures in Rs crores

Quarter ended Growth

30-Sep-06 30-Jun-07 30-Sep-07 YoY QoQ

Revenues 182.5 241.7 258.0 41.3% 6.7%

Direct Costs 120.0 171.8 181.6

Gross Profits 62.6 69.9 76.4 22.1% 9.2%

SG & A 30.4 29.6 33.0

EBITDA 32.2 40.3 43.4 34.9% 7.6%

Depreciation & Amortisation 10.8 13.1 12.9

EBIT 21.3 27.2 30.5 43.1% 12.3%

Gross Margin 34.3% 28.9% 29.6%

EBITDA Margin 17.6% 16.7% 16.8%

EBIT Margin 11.7% 11.2% 11.8%

21 www.hcltech.com/Investors
 About HCL Technologies
HCL Technologies is one of India's leading global IT Services companies, providing software-led IT solutions,
remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after
its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and
re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global
network of offices in 18 countries to deliver solutions across select verticals including Financial Services, Retail &
Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment (M&E). For
the quarter ended 30th September 2007, HCL Technologies, along with its subsidiaries had last twelve months
(LTM) revenue of US$ 1.5 billion (Rs. 6363 crores) and employed 45,642 professionals. For more information, please
visit www.hcltech.com

About HCL Enterprise

HCL Enterprise is a leading Global Technology and IT enterprise that comprises two companies listed in India - HCL
Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is one of India's original IT garage
start-ups. Its range of offerings span Product Engineering, Custom & Package Applications, BPO, IT Infrastructure
Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises
approximately 51,000 professionals of diverse nationalities, who operate from 18 countries including 360 points of
presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and
Technology firms. For more information, please visit www.hcl.in

Forward-looking Statements

Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties,
assumptions and other factors that could cause actual results to differ materially from those in such forward-looking
statements. All statements, other than statements of historical fact are statements that could be deemed forward
looking statements, including but not limited to the statements containing the words 'planned', 'expects', 'believes',
'strategy', 'opportunity', 'anticipates', 'hopes' or other similar words. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties regarding impact of pending regulatory
proceedings, fluctuations in earnings, our ability to manage growth, intense competition in IT services, Business
Process Outsourcing and consulting services including those factors which may affect our cost advantage, wage
increases in India, customer acceptances of our services, products and fee structures, our ability to attract and retain
highly skilled professionals, our ability to integrate acquired assets in a cost effective and timely manner, time and
cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability
to manage our international operations, reduced demand for technology in our key focus areas, disruptions in
telecommunication networks, our ability to successfully complete and integrate potential acquisitions, the success
of our brand development efforts, liability for damages on our service contracts, the success of the companies /
entities in which we have made strategic investments, withdrawal of governmental fiscal incentives, political
instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our
intellectual property, other risks, uncertainties and general economic conditions affecting our industry. There can be
no assurance that the forward looking statements made herein will prove to be accurate, and issuance of such
forward looking statements should not be regarded as a representation by the Company, or any other person, that
the objective and plans of the Company will be achieved. All forward looking statements made herein are based on
information presently available to the management of the Company and the Company does not undertake to update
any forward-looking statement that may be made from time to time by or on behalf of the Company.

22 www.hcltech.com/Investors
Talk to me MEDIA RELATIONS

For details, contact: Meena Vaidyanathan

meenav@hcl.in
INVESTOR RELATIONS +91 98186 65523

Vikas Jadhav Geetanjali Bhatia

Jadhav.v@hcl.in geetanjali.bhatia@hcl.in
+91-99102 33494 +91-9811987765

Renu Yadav Rikhil Seth

renu.yadav@hcl.in rikhil.seth@bm.com
+91-120 254 6043 +91-98106-47600

HCL Technologies Ltd.,

A 10-11, Sector-III, Noida - 201301
www.hcltech.com

Hello there. I'm from HCL Technologies. We work behind the scenes, helping our customers to shift paradigms & start
revolutions. We use digital engineering to build superhuman capabilities. We make sure that the rate of progress far
exceeds the price. And right now, 45,000 of us bright sparks are busy developing solutions for over 500 customers in
18countries across the world. How can I help you?

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