Q1FY24 Preview HCL Technologies: Revenues seen at Rs. 269,624 million, PAT at Rs. 39,609 million

11 Jul 2023 , 10:38 AM

Result date: 12^th July, 2023

Recommendation: Buy

Target price: Rs 3,580

 

As per analysts at IIFL Capital Services, HCL Technologies (HCL Tech) could post revenue growth of 0.9% cc QoQ, as large deal win ramp-up is partly offset by muted growth in ER&D. They expect margins to expand by 30 basis points sequentially, driven by productivity benefits and steady Products & Platforms. 

Analysts at IIFL Capital Services expect HCL Tech to reiterate FY24 revenue growth guidance of 6-8% cc YoY and EBIT margin guidance of 18-19%.

The company’s Profit After Tax (PAT) could grow 1.3% on a sequential basis.

Important management insights to watch out for:

• FY24 growth outlook across segments
• Puts and takes on margins for the remainder of FY24
• Deal win TCV and nature of deals
• Attrition and hiring trends

	June 2023 estimates	QoQ change	YoY change
Revenue (US$ mn)	3,279	1.4%	8.4%
Revenue (Rs. mn)	269,624	1.3%	14.9%
EBIT (Rs. mn)	49,785	2.9%	24.7%
EBIT margin	18.5%	30 bps	150 bps
Profit After Tax (Rs. mn)	39,609	1.3%	26.0%
EPS (Rs.)	14.6	(0.6)%	25.9%

Source: IIFL Research