Followings are factor :
Volume Growth
With focus on large deals, the company's business volumes measured in terms of billed working hours have been buoyant. In the December 2012 quarter, it reported 3%u0025 jump in volumes, twice better than that of bigger peers including TCS and Infosys. The trend of firm volumes is likely to continue since HCL Tech has bagged more larger deals, six to be precise worth $ 1billion, which will be rolled out in the next three-nine months.
Operating profitability
HCL Tech has traditionally been operating at much lower operating margin compared with its bigger peers. However, it's margin performance has improved significantly in the past eight quarters due to higher employee utilisation, better rationalisation of costs, and firm realisations at a time when some other sector players have reported dwindling profitability. Operating margin expanded to 19.8% in the December quarter from 14.3% two years ago. In the said period, TCS and Infosys reported a fall of 100 basis points and 450 basis points respectively.
Workforce dynamics
Over the past few quarters, HCL Tech has focused keenly on what it refers to as industrialisation of manpower or efficient allocation of human resource across projects. Its workforce increased by 4.4% in a year to December 2012, at a much more moderate rate compared with 22% increase in Infosys's employee number and 41% jump in manpower of TCS. Despite lower employee growth, HCL Tech's revenue on a trailing 12 months basis to December 2012 rose by 13%. This compared with 14% growth in TCS's revenue and 5% increase in Infosys's topline.
Stock performance
HCL Tech earned the highest returns for shareholders in 2012 among top four IT players. On Thursday, its stock hit a 12-year high of Rs 720.9. The company is in a position to beat sector indices this year as well considering its strong order pipeline and revival in its BPO operations.
