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3 min read | Updated on January 13, 2025, 11:34 IST
SUMMARY
HCL Technologies Q3: Key things to watch out for include commentary on cost takeout projects, the banking vertical, demand revival in developed markets, and the outlook on client discretionary spending. Besides, investors eagerly await the company's revenue growth guidance.
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Shares of HCL Technologies have rallied nearly 26% in the past 12 months.
The company's consolidated net profit is estimated to grow 8.5% on quarter to ₹4,596 crore. The IT major had recorded a net profit of ₹4,235 crore in the preceding quarter.
HCLTech's EBIT margin is expected to rise marginally during the quarter on the back of cost optimisation, as per news reports.
Besides, analysts across the board expect deal wins for the IT major to be in the range of $2-2.5 billion in Q3.
Key things to watch out for include commentary on cost takeout projects, the banking vertical, demand revival in developed markets, and the outlook on client discretionary spending.
Besides, investors eagerly await the company's revenue growth guidance.
It had reported a net profit of ₹3,832 crore in the year-ago period.
Revenue came in at ₹28,862 crore during the reporting quarter, 8.21% higher than ₹26,672 crore in the year-ago period.
HCLTech CEO & Managing Director C Vijayakumar said that the company's pipeline is very strong, including data & AI, digital engineering, SAP migration, and efficiency-led programmes.
"Revenue growth has come with improved profitability. Our EBIT margins in Q2 rose to 18.6%, up 149 bps sequentially. LTM Return on Invested Capital (ROIC) stands at a solid 35.7% at the company level and 43.5% at services, an expansion of 353 bps YoY and 403 bps YoY, respectively," said HCLTech CFO Shiv Walia.
HCLTech added 780 employees during the quarter, bringing the tally to 2,18,621.
HCLTech gave a revenue growth guidance of 3.5-5.0% year-on-year in constant currency.
Shares of HCL Technologies have rallied nearly 26% in the past 12 months.
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