HCL Tech Q1 profit seen down 5%, margin may fall too: Poll

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HCL Technologies, one of the largest software services exporters, is expected to report a 5 percent sequential fall in profit at Rs 1,742 crore in the quarter ended September 2014, according to the average of estimates of analysts polled by CNBC-TV18. Profit in the previous quarter was Rs 1,834 crore. The company will declare its July-September quarter earnings on Friday.

Revenue in rupee terms may jump 4.5 percent quarter-on-quarter to Rs 8,805 crore while dollar revenue is seen rising 3.24 percent sequentially to USD 1,452.5 million during the quarter (which seems to be lower compared to 3.4 percent growth reported in Q1FY15).

Constant currency growth in dollar revenue is seen at around 4 percent in first quarter of current financial year 2014-15 as against 2.8 percent in previous quarter.

Earnings before interest and tax (EBIT) are expected to be at Rs 2,065 crore, up 1.3 percent compared to Rs 2,038 crore in previous quarter but margin may fall 75 basis points sequentially to 23.45 percent during the quarter impacted by wage hikes.

Key things to watch out for are any rebound in the infra management services (after a sedate performance over the last three quarters), sales and marketing, deal wins etc.