Q3FY23 Preview: HCL Tech: Revenues seen at Rs258,061 million, PAT at Rs37,144 million

11 Jan 2023 , 07:06 AM

HCL Technologies could trim down its FY23 guidance. The company’s constant currency revenues could grow 1.9% sequentially in the December 2022 quarter, as positive seasonality in the Products and Platforms business is offset by higher-than-usual furloughs and slower-than-planned ramp-up of deals in Services business. 

Analysts at IIFL Capital Services expect margins to expand by 50 basis points sequentially, primarily driven by the change in business mix. They believe the company’s FY23 revenue growth guidance of 13.5-14.5% in constant currency terms could be at risk; they may narrow it downwards. 

The company’s Profit After Tax or PAT could grow ~8% sequentially.

Important management insights to watch out for:

• FY23 growth outlook across the 3 segments
• FY23 margin outlook and levers
• Impact of macro on demand
• Attrition and hiring trends

 

	December 2022 estimates	QoQ change	YoY change
Revenue (US$ mn)	3,138	1.8%	5.4%
Revenue (Rs. mn)	258,061	4.5%	15.6%
EBIT (Rs. mn)	47,551	7.4%	11.9%
EBIT margin	18.4%	50 bps	(60) bps
Profit After Tax (Rs. mn)	37,144	8.3%	8.4%
EPS (Rs.)	13.7	8.3%	8.5%

Source: IIFL Research