Profitability Ratios 2015 avg% 2015 median% 2014 avg%

Operating Margin 17.24 15.19 17.65

Profit Margin 9.98 9.47 10.73
Return on Assets 6.99 6.53 7.14
Return on Equity 21.37 20.54 20.3

Leverage & Coverage Ratios

Current Ratio 1.45 1.18 1.46
Quick Ratio 0.83 0.74 0.89
Interest Coverage Ratio (EBIT/ 184.08 28.06 118.19

Efficiency
Asset Turnover 0.75 0.72 0.79
Accounts Receivable Turnover 7.69 6.4 7.65
Accounts Payable Turnover 19.02 13.77 12.95

fcf /share 22.17 13.02 51.59

For global IT service industry
2014 median% 2013 avg% 2013 median% Profitability Ratios

14.39 17.31 15.89

8.87 9.89 7.72 Operating Margin
6.39 6.35 5.32 Profit Margin
19.09 21.1 18.51 Return on Assets
Return on Equity

1.27 1.39 1.18 Leverage & Coverage Ratios

0.81 0.85 0.9 Current Ratio
22.75 32.37 13.11 Quick Ratio
Interest Coverage Ratio (EBIT/

0.78 0.79 0.84

6.34 7.67 6.11
9.67 11.29 11.23 Efficiency
Asset Turnover
Accounts Receivable Turnover
33.86 29.4 4.97 Accounts Payable Turnover

fcf /share
 For HCL
FY 2,013 2,014 2,015

20% 23% 22%

16% 20% 20%
20% 25% 22%
35% 40% 33%

& Coverage Ratios

1.69 2.09 2.32
1.16 1.63 1.71
Coverage Ratio (EBIT/ 62.34 79.72 114.78

1.26 1.23 1.13

Receivable Turnover 6.11 6.32 6.01
Payable Turnover 2.22 2.11

28.77 44.26 36.62

INR n=1410 shares
Ticker Name Mkt Cap (INRP/S P/E Est. E Est. S
Median Median 1008400.55 2.1906 15.5316 74,260 405,578
HCLT IN EquiHCL TECHNO 1142712.64 2.60154587 14.4416801
Intrinsic using p/e Actual Intrinsic using p/s
P=(p/e)est e./n Stock price P=(p/s)est s./n
818.0020061277 810.65 630.1128842553
 HCL TECHNOLOGIES LTD
* Financial information is in INR (M)
Fiscal Year
-10FY
Periodicity: 6/06
ACCOUNTING_STANDARD
Income Statement
Revenue SALES_REV 45,716
- Cost of Goods Sold IS_COGS_T 24,947

Gross Income GROSS_PRO 20,769

- Operating Expenses IS_OPERAT 12,756
(Research & Dev Costs) IS_RD_EXP 41

Operating Income IS_OPER_IN 8,012

- Interest Expense IS_INT_EXP 58
- Foreign Exchange Losses (Gains) IS_FOREIG 806
- Net Non-Operating Losses (Gains) IS_NET_NO (335)

Pretax Income PRETAX_IN 7,483

- Income Tax Expense IS_INC_TAX 559

Income Before XO Items IS_INC_BEF 6,924

- Extraordinary Loss Net of Tax XO_GL_NET -
- Minority Interests MIN_NONCO 18

Diluted EPS Before XO Items IS_DIL_EPS 5.05

Net Income Adjusted* IS_COMP_N 6,907

EPS Adjusted IS_COMP_E 5.37
Dividends Per Share IS_DIV_PER 4.00
Payout Ratio % DVD_PAYOU 74.72

Total Shares Outstanding BS_SH_OUT 1294

Diluted Shares Outstanding IS_SH_FOR 1,369

EBITDA EBITDA 10,527

*Net income excludes extraordinary gains and losses and one-time charges.

Balance Sheet
Total Current Assets BS_CUR_AS 30,865
 + Cash & Near Cash Items BS_CASH_N 2,369
+ Short Term Investments BS_MKT_SE 15,885
+ Accounts & Notes Receivable BS_ACCT_N 8,708
+ Inventories BS_INVENT 233
+ Other Current Assets BS_OTHER_ 3,670

Total Long-Term Assets BS_TOT_NO 10,099

+ Long Term Investments BS_LT_INVE 120
Gross Fixed Assets BS_GROSS_ 14,495
Accumulated Depreciation BS_ACCUM 6,097
+ Net Fixed Assets BS_NET_FI 8,398
+ Other Long Term Assets BS_OTHER_ 1,582

Total Current Liabilities BS_CUR_LI 9,478

+ Accounts Payable BS_ACCT_P 4,652
+ Short Term Borrowings BS_ST_BO 251
+ Other Short Term Liabilities BS_OTHER_ 4,574

Total Long Term Liabilities NON_CUR_L 339

+ Long Term Borrowings BS_LT_BO 339
+ Other Long Term Borrowings BS_OTHER_L 0

Total Liabilities BS_TOT_LI 9,817

+ Long Preferred Equity BS_PFD_EQ 0
+ Minority Interest MINORITY_ 111
+ Share Capital & APIC BS_SH_CAP 10,359
+ Retained Earnings & Other Equity BS_RETAIN 20,678

Total Shareholders Equity TOT_SHRH 31,148

Total Liabilities & Equity TOT_LIAB_ 40,965

Book Value Per Share BOOK_VAL_ 24

Tangible Book Value Per Share TANG_BOOK 23

Cash Flows
Net Income CF_NET_IN 6,907
+ Depreciation & Amortization CF_DEPR_A 2,515
+ Other Non-Cash Adjustments CF_OTHER_ 693
+ Changes in Non-Cash Capital CF_CHNG_ (2,468)
Cash From Operating Activities CF_CASH_F 7,647

+ Disposal of Fixed Assets CF_DISP_FI 40

+ Capital Expenditures CF_CAP_EX (4,106)
+ Increase in Investments CF_INCR_I 0
+ Decrease in Investments CF_DECR_I 3,577
+ Other Investing Activities CF_OTHER_ (82)
Cash From Investing Activities CF_CASH_F (571)
 + Dividends Paid CF_DVD_PA (5,890)
+ Change in Short Term Borrowings CF_INCR_S 72
+ Increase in Long Term Borrowings CF_INCR_L 0
+ Decrease in Long Term Borrowings CF_REIMB_ (1,356)
+ Increase in Capital Stocks CF_INCR_C 884
+ Decrease in Capital Stocks CF_DECR_C 0
+ Other Financing Activities CF_OTHER_ 0
Cash From Financing Activities CF_CASH_F (6,290)

Net Changes in Cash CF_NET_CH 786

Free Cash Flow (CFO-CAPEX) CF_FREE_C 3,541

Free Cash Flow To Firm CF_FREE_C 3,595

Free Cash Flow To Equity FREE_CASH 2,296
Free Cash Flow per Share FREE_CASH 2.75

Ratio Analysis

Valuation Ratios
Price Earnings PE_RATIO 23.48
EV to EBIT EV_TO_T12 18.18
EV to EBITDA EV_TO_T12 13.84
Price to Sales PX_TO_SAL 3.55
Price to Book PX_TO_BOO 5.26
Dividend Yield DIVIDEND_ 0.03

Profitability Ratios
Gross Margin GROSS_MA 0.45
EBITDA Margin EBITDA_TO 0.23
Operating Margin OPER_MAR 0.18
Profit Margin PROF_MARG 0.15
Return on Assets RETURN_ON 0.16
Return on Equity RETURN_C 0.21

Leverage & Coverage Ratios

Current Ratio CUR_RATIO 3.26
Quick Ratio QUICK_RAT 2.84
Interest Coverage Ratio (EBIT/I) INTEREST_ 138.62
Tot Debt/Capital TOT_DEBT_ 0.02
Tot Debt/Equity TOT_DEBT_ 0.02

Others
Asset Turnover ASSET_TU 1.09
Accounts Receivable Turnover ACCT_RCV_ 6.22
Accounts Payable Turnover ACCOUNTS_ 5.92
Inventory Turnover INVENT_TU 80.09

Effective Tax Rate EFF_TAX_R 0.07

scal Year
-9FY -8FY -7FY -6FY -5FY -4FY -3FY -2FY
6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14
G_STANDARD

60,687 75,628 102,294 121,363 157,304 208,306 255,811 321,437

33,575 41,905 59,118 76,159

27,113 33,722 43,177 45,204

17,303 20,734 26,242 29,960 134,750 176,457 205,455 247,423
121 194 554 550 1,106 1,678 1,579 1,527

9,810 12,988 16,935 15,245 22,555 31,848 50,355 74,014

45 135 542 1,618 1,412 1,166 808 928
(3,465) 2,880 2,391 (42) 115 397 (445) 441
(1,050) (1,855) (2,037) (1,056) (324) (1,769) (2,704) (6,729)

14,280 11,829 16,038 14,724 21,351 32,055 52,697 79,374

1,041 1,290 2,843 2,134 4,885 7,827 12,253 14,096

13,239 10,538 13,195 12,590 16,466 24,228 40,444 65,278

- - - - - - - -
56 24 (2) (2) 1 1 43 183

9.73 7.68 9.74 9.14 11.81 17.22 28.60 45.97

13,183 10,514 13,196 12,592 16,465 24,227 40,401 65,095

10.10 7.91 9.86 9.35 12.05 17.53 29.08 46.59
4.00 4.50 3.50 2.00 3.75 6.00 6.00 5.00
39.83 56.93 35.59 21.48 31.25 34.28 20.68 10.74

1327 1333 1341 1358 1377 1387 1394 1400

1,355 1,370 1,354 1,378 1,395 1,407 1,413 1,416

13,608 17,027 21,251 19,924 27,152 37,341 56,723 80,822

ne-time charges.

29,766 37,475 58,620 67,283 66,566 90,953 126,335 193,296

 2,958 3,886 3,917 4,691 5,213 6,743 7,183 9,512
7,788 7,703 15,073 18,907 17,312 18,172 34,836 83,864
11,011 15,864 21,751 25,211 26,113 38,757 44,972 56,828
373 707 1,696 652 1,664 2,262 2,315 1,223
7,636 9,316 16,184 17,824 16,265 25,020 37,030 41,870

23,444 30,565 59,015 58,744 72,440 92,425 97,658 106,501

11,398 12,293 400 500 949 1,270 859 0
17,992 23,027 29,973 35,171 40,844 49,279 54,173 62,916
8,026 10,649 14,700 17,445 20,189 24,314 27,309 31,031
9,966 12,377 15,274 17,725 20,655 24,965 26,864 31,885
2,080 5,895 43,341 40,519 50,836 66,190 69,936 74,616

11,885 25,823 67,236 41,576 40,638 65,532 74,722 92,418

5,921 9,695 20,138 17,888 2,770 4,694 4,014 4,685
282 209 29,221 5,716 5,315 11,022 2,477 8,174
5,683 15,919 17,877 17,972 32,553 49,815 68,232 79,559

487 341 941 21,527 21,801 19,457 17,184 11,308

487 341 941 21,527 16,558 10,772 7,967 2,006
0 0 0 0 5,243 8,685 9,217 9,301

12,372 26,164 68,177 63,102 62,439 84,989 91,907 103,725

0 0 0 0 0 0 0 0
166 66 30 37 37 11 447 573
13,022 13,432 14,071 15,748 17,930 19,112 20,082 20,816
27,651 28,378 35,357 47,141 58,600 79,267 111,558 174,682

40,838 41,876 49,458 62,925 76,567 98,389 132,087 196,072

53,210 68,040 117,635 126,027 139,006 183,378 223,993 299,797

31 31 37 46 56 71 94 140
30 29 8 19 28 38 62 105

13,183 10,514 13,196 12,592 16,465 24,227 40,401 65,095

3,799 4,039 4,316 4,680 4,597 5,492 6,368 6,809
(244) (1,868) (54) (764) 2,120 4,964 888 (431)
(5,880) 1,254 (5,830) 1,706 (5,520) (8,310) (1,495) (2,441)
10,857 13,938 11,628 18,213 17,662 26,373 46,162 69,033

21 75 78 148 30 36 16 607
(3,897) (5,543) (6,388) (6,468) (7,851) (9,094) (6,187) (7,196)
0 0 (16,318) (106,784) (71,739) (62,515) (86,202) (78,520)
0 0 21,345 102,893 61,118 49,804 47,511 79,853
396 1,051 (34,294) (1,644) 10,241 9,525 19,331 (48,154)
(3,479) (4,417) (35,578) (11,856) (8,201) (12,244) (25,531) (53,410)
(5,992) (6,323) (7,089) (3,152) (5,179) (8,031) (8,083) (13,028)
31 (88) 0 0 (3,505) 4,922 (3,438) 735
100 79 40,213 27,404 121 237 651 113
(221) (251) (10,425) (31,157) (1,607) (8,766) (9,580) (700)
2,272 314 201 1,040 896 391 336 345
0 0 0 0 0 0 0 0
(87) 254 380 298 336 (1,353) (76) (22)
(3,897) (6,015) 23,281 (5,567) (8,938) (12,600) (20,190) (12,557)

3,481 3,506 (669) 791 523 1,530 440 3,065

6,961 8,396 5,241 11,745 9,811 17,279 39,975 61,837

7,002 8,516 5,687 13,128 10,900 18,160 40,595 62,600

6,893 8,210 35,107 8,140 4,851 13,708 27,624 62,593
5.33 6.32 3.92 8.72 7.18 12.50 28.77 44.26

17.03 15.96 9.43 19.48 20.54 13.59 13.34 16.10

22.27 12.11 8.02 16.46 15.08 10.27 10.12 13.07
16.05 9.24 6.39 12.59 12.53 8.76 8.98 11.97
3.70 2.22 1.22 2.02 2.15 1.58 2.11 3.26
5.61 4.02 2.52 3.93 4.45 3.36 4.11 5.37
0.02 0.04 0.04 0.01 0.02 0.03 0.02 0.01

0.45 0.45 0.42 0.37 0.00 0.00 0.00 0.00

0.22 0.23 0.21 0.16 0.17 0.18 0.22 0.25
0.16 0.17 0.17 0.13 0.14 0.15 0.20 0.23
0.22 0.14 0.13 0.10 0.10 0.12 0.16 0.20
0.28 0.17 0.14 0.10 0.12 0.15 0.20 0.25
0.37 0.25 0.29 0.22 0.24 0.28 0.35 0.40

2.50 1.45 0.87 1.62 1.64 1.39 1.69 2.09

1.83 1.06 0.61 1.17 1.20 0.97 1.16 1.63
220.44 96.35 31.23 9.42 15.97 27.32 62.34 79.72
0.02 0.01 0.38 0.30 0.22 0.18 0.07 0.05
0.02 0.01 0.61 0.43 0.29 0.22 0.08 0.05

1.29 1.25 1.10 1.00 1.19 1.29 1.26 1.23

6.16 5.63 5.44 5.17 6.13 6.42 6.11 6.32
6.38 5.41 4.03 3.95 0.60 1.80 2.22 2.11
110.73 77.60 49.21 64.89

0.07 0.11 0.18 0.14 0.23 0.24 0.23 0.18

 Equivalent Estimates
-1FY -0FY 1FY 2FY 3FY
6/15 3/16 3/17E 3/18E 3/19E

367,012 468,988 524,183 577,288

157,139 176,456 189,703

286,313
1,818

80,699 93,467 104,249 116,548

703
(699)
(10,875)

91,570 103,259 114,763 126,685

18,151

73,419
-
248

51.79

72,540 74,260 81,213 89,909 98,486

51.64 52.65 57.39 63.34 69.33
18.00 23.39 25.47 28.28
32.60 0.41 0.40 0.41

1406 1410
1,413

84,736 101,823 113,275 124,062

230,468 248,602
 12,163 92,415
92,103 5,347
65,387 76,818
1,576 2,645
59,240 71,376

121,979 144,835
99 157
72,179 77,631
32,627 33,404
39,552 44,227
82,328 100,452

99,451 101,597
6,254 6,996
4,799 3,681
88,398 90,920

9,931 15,782
1,679 7,374
8,252 8,408

109,382 117,379
0 0
821 3,116
21,624 22,451
220,620 250,490

243,065 276,058

352,447 393,437

172 194 228 262 293

138 150

73,171 81,144 89,731 98,198

4,038
(1,807)
(11,880)
63,521

65
(12,082) (26,916) (18,727) (17,673)
(166,551)
81,450
68,617
(28,501)
(28,244)
1,253
906
(5,440)
105
0
(486)
(31,907)

3,113

51,439 BEST_CALCULATED_FCF

52,003
48,223
36.62

17.66 14.1x 12.8x 11.7x

14.82
14.12 11.2x 10.0x 9.2x
3.52 2.4x 2.2x 2.0x
5.34 4.21 3.6x 3.1x 2.8x
0.02 0.0x 0.0x 0.0x

0.00 0.00 0.3x 0.3x 0.3x

0.23 0.00 0.2x 0.2x 0.2x
0.22 0.00 0.2x 0.2x 0.2x
0.20 0.00 0.2x 0.2x 0.2x
0.22 0.00 0.2x 0.2x 0.2x
0.33 0.00 0.3x 0.3x 0.2x

2.32 2.45
1.71 1.72
114.78
0.03 0.04
0.03 0.04

1.13
6.01
0.20 0.00
 FY 2013 FY 2014 FY 2015
Net income 40400.90 65095.10 73170.70
dividend 8083.00 13028.40 28243.80
P 0.80 0.80 0.61
Revenue 255810.60 321436.60 370610.00
R 0.16 0.20 0.20
A 1.26 1.23 1.13
T 1.77 1.60 1.49
ROE 0.35 0.40 0.33
sustainable growth 0.281002 0.318316 0.203274