HCL Technologies will report its March quarter results on Thursday during post-market hours. Analysts largely expect the IT major to report a single-digit rise in net profit for the quarter on a double-digit jump in net sales
HCL Technologies' sequential numbers are expected to be low partly due to its software business seasonality. Analysts said HCL Technologies may guide for a 5-7% FY24 revenue growth in constant currency terms and 18-20% FY24 EBIT margins
HCL Technologies board will consider and declare the final dividend for FY23, if any on April 20, 2023
"We expect HCL Tech to deliver degrowth of 1.2% QoQ (cc), with 1.3% QoQ (cc) growth in services segment more than offset by 19% QoQ (cc) decline in P&P segment due to seasonal weakness," Jefferies said
HCL Tech is expected to provide revenue growth guidance of 5-7% YoY and margin guidance of 18.5-19.5% for FY24. On profitability, expect HCL Tech to guide for 18-20% EBIT margin band
The services revenue is expected to grow 1.5% in cc terms, aided by a ramp-up of large deals won in the past quarters offset by ramp-downs in impacted verticals such as hi-tech and entertainment
Deal wins, deal pipeline and pace of deal closures, any deferment of projects amid macro uncertainties, growth outlook for ER&D and software businesses, and demand outlook for major verticals like BFSI, manufacturing, technology, retail, and healthcare will be keenly eyed
Following its quarterly results, the senior management of HCL Technologies will conduct an audio conference call at 7 pm (IST) for 60 minutes to discuss the results, followed by a detailed question-answer session
For the December quarter, HCL Technologies posted net profit of Rs 4,096 crore, while revenue for the quarter stood at Rs 26,700 crore. HCL Tech has risen nearly 2% so far this year, as against 3.15% decline in benchmark Nifty