Q1FY23 Preview: HCL Technologies: Revenue seen at Rs234,321 million, PAT at Rs35,720 million

11 Jul 2022 , 01:03 PM

Result date: 12th July, 2022

Recommendation: Buy

Target Price: Rs1,150

Analysts at IIFL Capital Services forecast a sequential revenue growth, in constant currency terms, of 3.4% in the June 2023 quarter, for HCL Technologies.  Continued strong demand for its IT services business and positive seasonality in the products business will drive revenue growth. EBIT margin in the quarter is estimated to increase by 60 basis points sequentially. This increase will be primarily because of change in business mix of the company.

Key management insights and metrics that should be watched out for are:

* FY23 growth outlook across the three segments, including impact of seasonality factor on its products business

* Outlook regarding margin in FY23

* Impact of ongoing macroeconomic concerns on demand 

* Attrition trends and other supply side factors 

	June 2022 estimate	QoQ change	YoY change
Revenue (US$ mn)	3,035	1.4%	11.6%
Revenue (Rs. mn)	234,321	3.7%	16.8%
EBIT (Rs. mn)	43,649	7.3%	11.0%
EBIT margin	18.6%	60 bps	(100) bps
Net income (Rs. mn)	35,720	(0.5)%	11.1%
EPS (Rs.)	13.2	(0.5)%	11.3%

Source: IIFL Research