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  1. HCL Tech Q3 results today: Will it outperform peers? Check analysts' expectations and share price trend

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HCL Tech Q3 results today: Will it outperform peers? Check analysts' expectations and share price trend

Upstox

3 min read | Updated on January 13, 2025, 11:34 IST

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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.

Stock list

Shares of HCL Technologies have rallied nearly 26% in the past 12 months.

Shares of HCL Technologies have rallied nearly 26% in the past 12 months.

HCLTech Q3 preview: HCL Technologies, the Noida-headquartered IT services company, is all set to declare its financial results for the December quarter of the current fiscal year (Q3 FY25) on Monday, January 13. The company, as per analysts tracking the IT sector, is expected to outperform its peers in revenue and net profit growth due to favourable seasonality for its Products & Platform (P&P) business.
According to a report by Moneycontrol, HCLTech is pegged to deliver a 4.4% increase in revenue to ₹30,135 crore, up from the ₹28,862 crore that it clocked in the previous quarter.

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.

"While margin guidance is largely expected to remain unchanged, investors would still be focused on how the company plans to meet its aspirational target range of 19-20 percent margins," the Moneycontrol report added.

HCLTech Q2 FY25 Results

HCL Technologies reported a 10.51% rise in consolidated net profit to ₹4,235 crore in the July-September quarter of the current fiscal.

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.

HCLTech stock performance

Shares of HCL Technologies have rallied nearly 26% in the past 12 months.

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