BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
HCL Technologies Ltd.'s revenues declined by 1.2% QoQ in constant currency terms (our estimate: down 1.0%), due to seasonal weakness in products and platform business, and client ramp-down in engineering research and development segment. IT services grew by 1.6% QoQ, led by financial services (up 6.9% QoQ).
Operating profit margin stood at 18.2%, (our estimate: 18.3%), miss was led by select clients in ER&D saw ramp-downs towards end of the quarter, while costs remained. P&P biz (due to seasonality) and ER&D biz accounted for headwind of 125 bps and 30 bps respectively, while efficiency in IT services saw gains of ~20 bps.
Net new total contract value wins stood at $2.1 billion in Q4, down 8% YoY (up 7% for full year FY23 at $8.9 billion) led by 13 large deal wins – 10 in services and three in software unit.
HCL Tech also shared additional colors that its bookings were up 19% YoY while annual contract value grew 7% QoQ; with 99% renewal rates.
Healthy commentary/TCV data, FY24 guidance of CC revenue growth at 6-8% and operating profit margin at 18-19% implies that HCL Tech is all set to deliver sector leading growth within tier I segment again in FY24E.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
