Q4FY22 Preview: HCL Technologies: Revenues seen at Rs226,397 million, PAT at Rs33,690 million

20 Apr 2022 , 09:26 AM

Result date: 21^st April, 2022
Recommendation: Buy
Target price: Rs1,350

Seasonality in products and platforms business will have a bearing on HCL Technologies’ results for the quarter ended March 31, 2022. This could eclipse the strong show put up by the IT services and ER&D businesses.

The company’s EBIT margin could contract by 100 basis points, reflecting changing business mix and persistent supply-side challenges.

Net profit could dip 1.7% sequentially to Rs. 33,690 million.

Important management insights to watch out for:
·         FY23 outlook across three segments
·         FY23 margin outlook
·         Commentary on supply side challenges, attrition
·         Updates on the planned investments laid out in FY22
·         Update on strategic changes for Products & Platforms, post management change
 

	March 2022 estimates	QoQ change	YoY change
Revenue (US$ mn)	3,008	1.0%	11.6%
Revenue (Rs. mn)	226,397	1.4%	15.3%
EBIT (Rs. mn)	40,852	(3.9)%	2.6%
EBIT margin	18.0%	(100) bps	(220) bps
Profit After Tax (Rs. mn)	33,690	(1.7)%	13.7%
EPS (Rs.)	12.4	(1.7)%	13.8%

Source: IIFL Research