HCL Technologies Partners With Verizon Business In $2.1 Billion Game-Changing Dea

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New Delhi, 12th August 2023: In morning trading on Friday, HCL Technologies’ stock price saw a nearly 5 per cent increase on the Bombay Stock Exchange (BSE). The stock reached an intraday peak of Rs 1,186.95, the day after announcing a partnership agreement with Verizon Business.

On August 10th, HCL Technologies disclosed a significant deal worth $2.1 billion with the prominent U.S. telecommunications company. This strategic global collaboration positions HCL Tech as the primary managed network services (MNS) partner for Verizon Business across all networking deployments serving global enterprise clientele.

The collaborative effort combines Verizon’s robust networking capabilities, solution expertise, and expansive scale with HCL Technologies’ industry-leading managed service proficiency. This partnership is poised to revolutionize large-scale wireline service provision for enterprise clients, as stated by the company. HCL Tech will assume a pivotal role in MNS deployments globally for enterprise customers, leading post-sale implementations and ongoing support, while Verizon Business will drive sales, solutions, and customer acquisitions.

The partnership promises customers an unparalleled MNS portfolio, a digitally optimized experience featuring data-driven service models, heightened efficiency, seamless lifecycle management through a user-friendly interface, an extensive end-to-end partner network, and collaborative innovation on an integrated platform.

C Vijayakumar, the CEO and Managing Director of HCLTech emphasized the significance of Managed Network Services as a core business aspect, expressing pride in joining forces with Verizon Business to lead MNS in all network deployments, modernization efforts, and operations for private enterprises. He highlighted the potential of their data-driven service delivery, advanced network capabilities, and effortless customer interfaces combined with Verizon’s network strength to enhance business outcomes and speed to market.

Simultaneously, HCL Tech’s results for the June quarter fell short of market expectations. In the first quarter of fiscal 2023-24, the company reported a 7.6 per cent year-on-year growth in consolidated net profit, while profit after tax dipped by 11.27 per cent compared to the previous March quarter of fiscal 2022-23, amounting to ₹3,983 crore.

Despite this, the company upheld its guidance for the fiscal year 2023-24, projecting a constant currency revenue growth of 6-8 per cent and an operating margin (EBIT margin) of 18-19 per cent. The guidance also indicated an anticipated constant currency services revenue growth of 6.5-8.5 per cent.

Over the past year, HCL Tech’s stock has surged by 21 per cent, surpassing the 10 per cent gain observed in the equity benchmark Sensex.