HCL Tech Q1 PAT seen up 11.3% at Rs 1333 cr: Motilal Oswal
According to Motilal Oswal, HCL Technologies may report a 11.3 percent growth quarter-on-quarter (growth of 54.3 percent year-on-year) in net profit at Rs 1,333.3 crore.
October 15, 2013 / 19:14 IST
Motilal Oswal has come out with its July-September earnings estimates for the information technology sector. The brokerage house expects HCL Technologies to report a 11.3 percent growth quarter-on-quarter (growth of 54.3 percent year-on-year) in net profit at Rs 1,333.3 crore.
Revenues are expected to increase by 13.8 percent Q-o-Q (up 29.8 percent Y-o-Y) to Rs 7903.7 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 21.9 percent Q-o-Q (up 48.2 percent Y-o-Y) to Rs 1,969 crore.Motilal Oswal's Report on HCL Technologies:We expect HCL Tech's revenues to grow 3 percent Q-o-Q to USD 1,265 million. Traction in IMS should be strong - we estimate 6.1 percent Q-o-Q growth to USD 410 million. We expect software services revenue growth of 1.5 percent Q-o-Q to USD 800 million.Cross-currency movements would have a negative impact of 60bp. Our volume growth estimate for software services is 2.6 percent Q-o-Q. In INR terms, we expect revenue growth of 13.8 percent Q-o-Q to INR 79.04 billion.While wage hikes to a section of the staff will be a 60bp headwind to margins, we expect EBITDA margin to expand 160bp Q-o-Q to 24.9 percent (after ESOP charges), owing to INR depreciation of 10.5 percent Q-o-Q.Our PAT estimate for the quarter is INR 13,333 million, up 11.3 percent Q-o-Q. Our PAT margin estimate is 16.9 percent (after ESOP charges).HCL Tech announced deal signings with TCV of over USD 1 billion+ in 4QFY13, taking total deals in FY13 to USD 3 billion+. TPI has suggested that 2HCY13 will see healthy deal closures, driving expectations of healthy deal signings at HCL Tech.The stock trades at 14x FY14E and 12.6x FY15E EPS.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
