Stockrabit · Analysts
Questions across 2 calls

Abhishek Pathak

Motilal Oswal Financial Services Limited

HCL Technologies Limited

HCL Technologies Limited CC-Apr26.pdf · 2026-04-21
Yes, hi, thank you for the opportunity. My first question is on the deflation number that CVK referenced. So CVK, on the 3% to 5% deflation estimate that we have, what is the risk that this number kind of keeps expanding over, let's say, the next 2 to 3 years as model capabilities improve, and more and more of what IT services kind of provide comes under the ambit of what GenAI can do? That's the first question. And the second question is - as an offset to that is, you did mention your GenAI offerings across be it Chip Design, be it Agentic AI, etc. So, across those five offerings that you have, which of the offerings do you think are seeing the maximum uptake and where you feel like over-indexing a lot over the next 2 to 3 years so the impact of deflation kind of gets offset? And if I could just squeeze in one more on the guidance front, how much of the guidance softness comes from geopolitical pressures and how much of it comes from the event that have happened between the last 2 to 3 months that includes, the release of Opus 4.6 or the geopolitical impact that we've had? Thank you.
Thanks CVK, all the best.
HCL Technologies Limited CC-Mar25.pdf · 2025-04-22
Hi. Thanks for the opportunity. CVK, just a clarification on the upper end of guidance. So, as you said, right, I mean, if you end up closing the large deal and the demand environment remains the same, in that case, should we assume an upside kind of risk to this number? That's one. And the other question I had was slightly nuanced around the nature of demand this time. You did mention that discretionary spend will again be subdued. And if we again go into kind of cost takeout sort of scenario, do you think this time the cost takeout will be AI driven? And if yes, are organizations even ready to sort of scale AI enterprise wide, which means , should we kind of, you know, be expecting accelerated spend around data and cloud and stuff like that in which scenario again, what exactly is di scretionary anymore, right? So, any color on that will be helpful because cloud and modernization ideally would be considered discretionary, but in the scenario that we are talking about, all of those spends might actually be fast -tracked. So, any perspect ive on that, that will be helpful. Thanks.
Thanks, CVK. And just a very small follow -up. Do you think the cost pressures will kind of put a little bit of a break on the GCC expansion story? Do you think vendors now become, I mean, they again become the first go -to solution for clients in this scenario?