Dear Shareholder,

HCLTech delivered a stellar performance in FY23, crossing many important milestones and building on a strong momentum in our chosen markets. We delivered this strong performance in the backdrop of continued macroeconomic transition.

At the beginning of FY23, we communicated a clear set of five strategic objectives:

• Leadership through differentiated services and products
• Employer of choice in professional services across all our key geographies
• Preferred Digital partner for Global 2000 enterprises in chosen markets
• Weave ESG (Environmental, Social and Governance) goals into business strategy
• Deliver top quartile TSR (Total Shareholder Return) over the medium term

During the past 12 months, we have made meaningful progress on each of these objectives.

Our revenues crossed the ₹100,000 crores milestone and our employee base reached the 225,000 mark.”

Our overall revenues grew 13.7% YoY in constant currency, with the services business registering an impressive growth of 15.8% YoY underlined by a healthy margin performance. Our revenues crossed the ₹100,000 crores milestone and our employee base reached the 225,000 mark (including an intake of 25,000+ entry level employees), while our services portfolio encompassing Digital, Engineering, Cloud, AI and Software, coupled with our strategic alliances, all punched in equal weight.

As we registered this impressive financial performance, we also doubled down on our market leadership by emerging as the only service provider in the world to be rated as a Leader in all six Gartner Magic Quadrant reports related to IT services. This is a very important and comprehensive testament to the vision, strategy and maturity of all our offerings in our largest IT & Business Services segment and positions us as a clear frontrunner in the integrated IT services market. We continue to dominate the Engineering and R&D Services segment with broadbased offerings that are highly acclaimed in the industry. Our transformation efforts to build a growing software product portfolio saw good results during the year.

Our employees are helping us retain this lead by leveraging the learning and development programs we offer to keep them on the forefront of technology trends. This year, the company trained 70,000+ employees in digital skills and 150,000+ in other core skills. We invested 9.4 million person-hours in training during the fiscal year, which is an emphatic reiteration of the learning mindset and commitment of our people. We believe that an established and proactive regime of upskilling can help us stay competitive in the rapidly changing environment and unlock the agility that our people need to thrive.

Our workplaces are evolving too. We continue to believe in the virtual-first, hybrid workplace model, with flexibility for employees to use office spaces and leverage remote working as needed. Our approach has been balanced and measured, led by active dialogues with our people and clients to develop a ‘right-mix for the right-time-andright- place’ model.

We continue to make progress on our ESG commitments, having pledged to be net zero by 2040. Almost one-fifth of our energy consumption today comes from renewable sources, and we have reduced our per capita Scope 1 and 2 greenhouse gas emissions by 70%. We are also very proud to be 26x water positive across our operations in India. Our diligent efforts around all these arenas resulted in HCLTech being recognized as an ESG leader in the software and services industry in MSCI ESG ratings. We were also included in Sustainalytics’ 2023 Top-Rated ESG Companies list and were designated an ‘Industry Mover’ in the S&P Global Sustainability Yearbook 2023.

On the corporate social responsibility (CSR) agenda, HCL Foundation has made significant strides by impacting more than five million lives in India while harvesting 32 billion liters of water for reuse in communities. We also continue to support different social initiatives worldwide through our global CSR councils.

The year also saw another important milestone in the form of our wide-ranging brand transformation— establishing our new HCLTech brand identity, underpinned by the positioning of Supercharging Progress^TM and a new employee value proposition of Find Your Spark. Both have re-energized the company’s cultural fabric and collective performance.

Our balanced business model has put us in a position of great advantage

In FY24, we continue to operate in an environment of high volatility. A combination of factors including geopolitical uncertainties, rising inflation and softening of consumer spending in a few sectors are creating some turbulence in the market.

As a result, the rally in technology spending triggered by the pandemic is now stabilizing, and clients are consolidating their technology spends to ensure speed and focus on the most cost-effective and revenue-impacting technologies. Enterprises are also consolidating vendors that have delivered with consistency, efficiency and measurable impact, and can offer a large suite of services.

Our unique portfolio mix spans a wide gamut of operational and transformational technologies across Digital, Engineering, Cloud, AI and Software, and this depth and breadth continues to position us as a partner of choice and partner full of choices for Global 2000 organizations. A client CXO put it most discernibly: “HCLTech is a partner for every season and every right reason.”

This unique stature owes itself, in equal parts, to the cutting-edge work we continue to do in various emerging and mature tech spaces as well as to our expertise, which reinforces HCLTech’s position as a trusted innovation advisor to our clients.

In AI, for example, we are one of the few companies in the world with experience and embracement of enterprise AI from its early days. With an elaborate AI ecosystem and extensive range of AI services, today we serve our clients across semiconductors, software, data, algorithms, cloud and more. We are also an early adopter of GenAI technologies as a consumer and a launch partner for all the major hyperscalers on their GenAI stack.

Our unique portfolio mix spans a wide gamut of operational and transformational technologies across Digital, Engineering, Cloud, AI and Software, and this depth and breadth continues to position us as a partner of choice and partner full of choices for Global 2000 organizations.”

From a delivery perspective, we’ve continued to embrace our nearshore model, continuing to expand into the U.S., Mexico, Brazil, Eastern Europe and parts of Asia. Over the last three years, we’ve doubled nearshore headcount and expanded our New Vistas locations to smaller markets across India, which now account for 13% of our total workforce in India.

Together with our people and our partners, we believe we can shape a new era of technology transformation where speed meets scale, resilience meets responsibility and profits meet purpose.”

Looking ahead

Looking ahead, we remain optimistic of the growth momentum of our company.

We are committed to delivering top quartile total shareholder return (TSR) by focusing on sustained organic growth, better profitability and increasing return on invested capital while maintaining superior cash conversion metrics. We are executing well on the pre-defined capital allocation of a minimum payout of 75% of net income cumulatively during FY22-FY26. Together with our people and our partners, we believe we can shape a new era of technology transformation where speed meets scale, resilience meets responsibility and profits meet purpose.

This aspiration is fueled by the passion of our people, the trust of our clients and the faith invested in us by our shareholders, to each of whom we remain deeply grateful.

In closing, I’d like to thank all committed HCLTechies around the world who demonstrate an unwavering commitment to deliver value and embrace our culture of Ideapreneurship. Our newly articulated brand purpose is to bring together the best of technology and our people to supercharge progress. At HCLTech, we are committed to ensuring that technology complements and accelerates positive and inclusive progress for everyone–our clients, our people, our communities and the planet at large.

Sincerely,

C Vijayakumar