ADVERTISEMENT

HCL Tech Q3 Results Review - HCL Software Springs A Positive Surprise: Nirmal Bang

Ebit margin expanded by 165 bps QoQ against our estimate of 60 bps expansion, largely driven by the significant P&P outperformance

<div class="paragraphs"><p>HCL Tech's corporate office. Source: Company's official website)</p></div>
HCL Tech's corporate office. Source: Company's official website)

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. 

Nirmal Bang Report

HCL Technologies Ltd. in Q3 FY23 delivered CC QoQ revenue growth of 5% (13.1% YoY), much above the 3% growth that we were estimating, largely driven by the 30.5% QoQ growth delivered by HCL Software (products and platforms business). We were assuming a 10- 15% growth for P&P.

Ebit margin expanded by ~165 basis points QoQ against our estimate of 60 bps expansion, largely driven by the significant P&P outperformance (higher margin).

HCL Tech has reduced the revenue growth guidance for FY23 to 13.5-14% in constant currency terms on the back of higher-than-expected furloughs in the services business.

This has been lowered from 13.5%- 14.5% indicated post 2QFY23. Ebit margin guidance has been narrowed to 18-18.5% from the previous 18-19%.

Click on the attachment to read the full report:

Nirmal Bang HCL Technologies -Q3FY23 Result Update.pdf

More Research Reports On HCL Tech's Q3 FY23 Results Review

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.