HCL continues to respond well to the changing market dynamics. The financial performance and strategic actions in the past few quarters is a testimony to the solidity of its fundamentals, and effectiveness of its strategy. HCL continues to create innovation and growth in a challenging market environment.

"Though there are signs of an early recovery in sectors like Financial Services, we continue to be cautious. We continue to see sustained recovery only by next year. In the new normal world of changed consumption patterns, new growth drivers, new sources of innovation and new uses of technology, companies will be dealing with a new reality that brings with it moderated growth rates and higher government regulation. HCL is poised to take advantage of the upcoming market opportunities", said Shiv Nadar, Chairman and Chief Strategy Officer, HCL Technologies.

Commenting on the results, Vineet Nayar, CEO, HCL Technologies said "We continue to excel. We have had another good quarter recording a revenue growth of 25.8% YoY on the back of 21.0% YoY growth last quarter. At the same time, our margins grew by 26.3% YoY. We have accelerated growth in Infrastructure Services, Custom Applications, Telecom, Media, Retail and Financial Services besides gaining market share in US and Europe. This reaffirms our leadership in these markets and further strengthens our momentum of a broad-based growth. We continue our investments in new services, emerging markets, best in class discrete services and Total IT outsourcing coupled with our focus on employee engagement and customer satisfaction which has stood us well."

Key Catalysts for Growth

o HCL has witnessed positive growth in US and Europe

o Infrastructure Services and Custom Application recorded accelerated growth reaffirming HCL's dominant market position

o Growth recorded in Media Publishing & Entertainment (MPE) followed by Retail & CPG, Financial Services while Telecom & Life Sciences have demonstrated positive traction

Multi-serivce; Multi-year; Multi-million dollar deals

o New wins during this quarter include EFH, American Family Insurance, U. S. Food Service, NetApp, Xerox-XIM amongst others

Transformation @ HCL

o HCL participates as a panelist in the session "Towards a Green Recovery" as part of the World Economic Forum 'New Champions' Annual Meeting in China. The session focused on promoting sustainable economic recovery and discussed other points including various government stimulus packages allocating significant amounts to green growth, impact of unprecedented spending, short- term impact of a green recovery strategy

o The UK Trade & Investment India Business Awards 2009 presented Shiv Nadar, Chairman and Chief Strategy Officer, the UK Trade & Investment (UKTI) Business Person of the Year Award in acknowledgment of HCL's pioneering investment in the UK under his visionary leadership, and for his focus and direction in establishing HCL as a leader in the ICT industry in India Recognitions

o HCL applauded for improved transparency by IDC's Financial Insights in their July 09 report "Best Practices: Are Asia/ Pacific Banks Ready to Turn the Spotlight on Vendor Risk". The report discusses major drivers of the increased focus given to vendor risk management by financial institutions in the Asia/Pacific region. HCL's standards of corporate transparency have been noted especially mentioning detailed disclosures made to current and potential clients and the appointment of a twin audit system reviewing key assets

o HCL won the prestigious 'Golden Peacock Innovation' award for its MTaaSTM (a Business Service Management centric service delivery platform) offering in the IT Sector category. The offering was chosen amongst more than 188 corporate entries through a stringent selection process based on an exhaustive set of parameters. The Golden Peacock Awards instituted by the Institute of Directors
(IoD) in 1991 are considered the holy grail of corporate excellence, one of the most prestigious citations in the Indian industry

o HCL ranked by Gartner as the highest pure-play IT service provider among global 211 Manufacturing Industries on Net Promoter Score (NPS). NPS is a measure of customer loyalty calculated by a survey to help executives gauge the extent of loyalty among their customers. A high NPS indicates good signs of customer reference, increasing customer loyalty and possibly higher average growth rate

o HCL AXON rated as a leader in the Forrester Wave for SAP Implementation Providers. HCL has made the most notable leap since Forrester's last evaluation of this market through its acquisition of Axon, which makes it a serious contender across all phases of the SAP implementation life cycle

o HCL AXON ranked amongst the Top 10 in "The Top 25 SAP Service Providers" by AMR Research. With HCL AXON, India Inc. stands to compete at scale with the world's largest IT services companies with an end-to-end SAP services portfolio

o HCL BPO ranked No. 1 amongst the 2009 Top Cross-Industry BPO Vendors by the Black Book of Outsourcing. HCL is recognized as a company that continues to grow and deliver highly innovative solutions with a diverse service portfolio, robust service delivery and strong relationships with key business and trade partners.

o HCL BPO won the CIO 'Ingenious 100' Award 2009 for the second consecutive time for its IT Service Management Platform, eNSUREIT. The annual award program by IDG India's CIO magazine recognizes organizations that exemplify the highest level of operational and strategic excellence in information technology. HCL won this award for its IT innovation eNSURE IT which is a platform that enables a process-driven blend of people and technology resulting in 99.9% of service uptime

Business Highlights

o HCL AXON completed a carve-out of Enterprise Solutions SAP practice of the UCS Group in South Africa. The carve-out deepens HCL AXON's SAP capabilities with best-in-class SAP Retail Industry Solutions (IS), bringing in proven competency in IS Retail and further increase the global delivery capabilities, including a significant boost to the company's market presence in South Africa. The partnership allows UCS Group to grow its annuity services business internationally and to support the growth of its SAP All in One business.

o Queensland Rail won SAP's Customer Awards of Excellence in the category of Best Value Realization for its programme with HCL AXON.

o HCL awarded Velocity Global Alliances - Gold Tier Partner by EMC2 2009. Based on HCL's alliance efforts with EMC, HCL has been chosen as a top partner for EMC and is now part of the Velocity program. The Velocity Program is a 'best in class' Alliance partner program customized for global Systems Integrators and Outsourcers that provides a consistent and predictable funding model for business development.

o HCL invested in Next Generation Green Data Center in New Jersey further expanding its U. S. Delivery footprints. The facility enables End-to-End Data Center Services including Near-shore Co-Location Solutions, Business Continuity Planning, Cloud Computing and Mainframe Management Services

HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on 'transformational outsourcing', underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of 'Employee First' which empowers our
54,443 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.3 billion (Rs. 11,270 crores), as on 30th September 2009 (on LTM basis).

About HCL Enterprise

HCL is a $5 billion leading global Technology and IT Enterprise that comprises two companies listed in India - HCL Technologies & HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups, a pioneer of modern computing, and a global transformational enterprise today. Its range of offerings spans Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products across a wide range of focused industry verticals. The HCL team comprises over
60,000 professionals of diverse nationalities, who operate from 26 countries including over 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology

Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements of historical fact are statements that could be deemed forward looking statements, including but not limited to the statements containing the words 'planned', 'expects', 'believes', 'strategy', 'opportunity', 'anticipates', 'hopes' or other similar words.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding impact of pending regulatory proceedings, fluctuations in earnings, our ability to manage growth, intense competition in IT services, Business Process Outsourcing and consulting services including those factors which may affect our cost advantage, wage increases in India, customer acceptances of our services, products and fee structures, our ability to attract and retain highly skilled professionals, our ability to integrate acquired assets in a cost effective and timely manner, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, the success of our brand development efforts, liability for damages on our service contracts, the success of the companies / entities in which we have made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property, other risks, uncertainties and general economic conditions affecting our industry.

There can be no assurance that the forward looking statements made herein will prove to be accurate, and issuance of such forward looking statements should not be regarded as a representation by the Company, or any other person, that the objective and plans of the Company will be achieved. All forward looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.