HCL Technologies to announce Q1 results tomorrow; here's what to expect
With HCL Technologies results due Tuesday, market experts expect sustained revenue growth of the company in the range of 12-14%. Shares of the company closed 4.10% down at Rs 943.40 on Monday.
- Jul 11, 2022,
- Updated Jul 11, 2022 4:52 PM IST
HCL Technologies may report subdued results for the June quarter on Tuesday due to a rise in travel costs, elevated manpower costs due to high attrition and drag on utilisation due to massive fresher hiring in FY22.
An assessment by Prabhudas Lilladher showed that the country’s third-largest IT player in terms of market capitalisation may report a 17.60 per cent year-on-year and 9.9 per cent quarter-on-quarter fall in Q1FY23 adjusted net profit. On the other hand, it sees 16.50 per cent YoY and 3.40 per cent QoQ growth in revenues during the quarter. The brokerage further believes that the EBITDA margin may contract by 286 basis points on a YoY basis and 76 basis points on a QoQ basis.
“We expect HCLT to maintain 12-14 per cent revenue growth guidance and 18-20 per cent EBIT margin guidance for FY23,” Prabhudas Lilladher said.
On the other hand, IDBI Capital Markets believes that HCL Technologies may report a 0.5 per cent YoY growth in net profit in the June quarter. However, it sees a 10.1 per cent QoQ drop in the bottom line of HCL Technologies.
“We expect EBIT margin to de grow by around 108 basis points QoQ mainly due to wage hike and change in mix and lower utilisation,” IDBI Capital Markets said while adding that the company may report 2.2 per cent QoQ growth in revenue in dollar terms partially offset by 20 basis points cross currency impact.
In general, market watchers advised investors to zero in on the impact of high inflation and challenging macro environment on tech spending, deal wins and deal pipeline, onsite wage inflation and attrition trend, growth outlook in products business and commentary on the ability to maintain margin within guidance range in the forthcoming results.
Shares of the company closed 4.10 per cent down at Rs 943.40 on Monday, while the benchmark BSE Sensex settled 0.16 per cent lower at 54,395.23.
Another brokerage KR Choksey Shares and Securities said HCL Technologies is likely to post 5.8 per cent YoY growth in profit after tax in Q1FY23. On the other hand, the figure may fall by 5.30 per cent on a QoQ basis.
“We forecast dollar revenue growth of 1.1 per cent QoQ driven by continued strength in IT services and positive seasonality in products and platform (P&P). We expect the margin to remain flattish driven by changes in business mix,” the brokerage said.
HCL Technologies may report subdued results for the June quarter on Tuesday due to a rise in travel costs, elevated manpower costs due to high attrition and drag on utilisation due to massive fresher hiring in FY22.
An assessment by Prabhudas Lilladher showed that the country’s third-largest IT player in terms of market capitalisation may report a 17.60 per cent year-on-year and 9.9 per cent quarter-on-quarter fall in Q1FY23 adjusted net profit. On the other hand, it sees 16.50 per cent YoY and 3.40 per cent QoQ growth in revenues during the quarter. The brokerage further believes that the EBITDA margin may contract by 286 basis points on a YoY basis and 76 basis points on a QoQ basis.
“We expect HCLT to maintain 12-14 per cent revenue growth guidance and 18-20 per cent EBIT margin guidance for FY23,” Prabhudas Lilladher said.
On the other hand, IDBI Capital Markets believes that HCL Technologies may report a 0.5 per cent YoY growth in net profit in the June quarter. However, it sees a 10.1 per cent QoQ drop in the bottom line of HCL Technologies.
“We expect EBIT margin to de grow by around 108 basis points QoQ mainly due to wage hike and change in mix and lower utilisation,” IDBI Capital Markets said while adding that the company may report 2.2 per cent QoQ growth in revenue in dollar terms partially offset by 20 basis points cross currency impact.
In general, market watchers advised investors to zero in on the impact of high inflation and challenging macro environment on tech spending, deal wins and deal pipeline, onsite wage inflation and attrition trend, growth outlook in products business and commentary on the ability to maintain margin within guidance range in the forthcoming results.
Shares of the company closed 4.10 per cent down at Rs 943.40 on Monday, while the benchmark BSE Sensex settled 0.16 per cent lower at 54,395.23.
Another brokerage KR Choksey Shares and Securities said HCL Technologies is likely to post 5.8 per cent YoY growth in profit after tax in Q1FY23. On the other hand, the figure may fall by 5.30 per cent on a QoQ basis.
“We forecast dollar revenue growth of 1.1 per cent QoQ driven by continued strength in IT services and positive seasonality in products and platform (P&P). We expect the margin to remain flattish driven by changes in business mix,” the brokerage said.