
HCL Technologies Ltd (HCL Tech) is all set to report its June quarter results on Wednesday, alongside bigger peer TCS, post market hours i.e. after 3:30 PM. Following the results announcement, senior management of HCL Technologies would conduct audio conference call at 8 pm for 60 minutes to discuss the results, which would be followed by a detailed question-answer session.
Analysts largely expect HCL Tech to retain its FY24 revenue growth guidance of 6-8 per cent and also 18-19 per cent EBIT margin guidance for FY2024. They see profit and sales to grow in double-digits on year-on-year (YoY) basis.
HCL Tech Q1 results preview
Kotak Institutional Equities sees reported profit for HCL Tech to rise 18.2 per cent YoY to Rs 3,886.70 crore compared with Rs 3,288.90 crore in the same quarter last year. Sales are seen rising 14.9 per cent YoY to Rs 26,963.20 crore from Rs 23,464.80 crore YoY.
"Our forecast of 1 per cent organic CC revenue growth rate is based on 3 cent QoQ growth in IT services courtesy of ramp-up in mega-deals, 2.5 per cent QoQ revenue decline in ERD and 4.1 QoQ drop in the products segment. The ERD segment will have to bear full quarter impact of programs that came to an end or were cancelled. EBIT margin will remain stable QoQ Pressure from large deal ramp-up will be offset by operational improvements," it said.
HSBC pegs HCL Tech's profit at Rs 3,776 crore, up 14.9 per cent YoY. It sees revenue rising 15 per cent to Rs 26,987 crore while the dollar revenue is seen growing 1.5 per cent sequentially. (8.5 per cent YoY). Ebit margin is seen falling to 17.5 per cent from 18.1 per cent in the March quarter, but would be better than year-ago's 17 per cent.
"We expect Q1 margins to decline by 60 bps; Q1 margins are seasonally weak for HCL Tech owing to productivity commitments in a few of its customer contracts in the services business. Lower attrition should offset some of this impact. We expect FY24e margins of 18.2 per cent, at the lower end of its guidance (guidance of 18-19 per cent)," HSBC said.
Emkay Global sees profit growing 20.8 per cent YoY at Rs 3,965 crore and sales 14.9 per cent YoY at Rs 26,948 crore. "We are building in 1.3 per cent QoQ dollar revenue growth after factoring in 50bps cross-currency tailwinds. Sequential revenue growth is expected to be driven by software due to seasonality, while services growth is expected to be driven by IT and business services and ER&D to remain soft," Emkay Global said.
HCL Tech interim dividend
The board of HCL Tech will also consider payment of second interim dividend for FY24. The record date for determining the entitlement of the shareholders for the payment of the aforesaid dividend would be July 20.
Also read: Multibagger stock: Elecon Engineering shares spurt 18% on upbeat Q1 results
Also read: Hot stocks on July 11, 2023: Satin Credicare, CarTrade Tech, Suzlon Energy, Vadilal and more
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today