Q4FY23 Preview: HCL Technologies: Revenues seen at Rs 267,197 million, PAT at Rs 40,491 million

18 Apr 2023 , 10:06 AM

Result date: 20^th April, 2023

Recommendation: Add

Target price: Rs 1,150

Analysts at IIFL Capital Services expect revenue of HCL Technologies to decline by 1.3% cc QoQ in Q4, driven by seasonality in Products and Platforms as Services remain stable. Margins too will probably contract by 90 basis points sequentially, primarily driven by the change in business mix. 

Analysts at IIFL Capital Services believe HCL Technologies could give FY24 revenue growth guidance of 7-9% cc YoY and maintain its EBIT margin guidance of 18-20%. 

HCL Technologies’ Profit After Tax (PAT) could remain flattish sequentially.

Important management insights to watch out for:

• FY24 growth outlook across the 3 segments
• Progress on previously undertaken investments and their impact on margins in FY24
• Impact of macro on demand
• Attrition and hiring trends

	March 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	3,247	0.1%	8.5%
Revenue (Rs. mn)	267,197	0.1%	18.2%
EBIT (Rs. mn)	50,034	(4.3)%	23.0%
EBIT margin	18.7%	(90) bps	70   bps
Profit After Tax (Rs. mn)	40,491	(0.1)%	12.8%
EPS (Rs.)	14.9	(0.1)%	12.8%

Source: IIFL Research