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Last Updated : Jan 24, 2017 08:56 AM IST | Source: CNBC-TV18

HCL Tech Q3 net seen up 0.5%, FY17 dollar revenue guidance key

IT services provider HCL Technologies' third quarter profit is seen rising only half a percent sequentially to Rs 2,025 crore as margin may shrink by 35 basis points to 19.75 percent due to staggered wage hike and currency headwind.


IT services provider HCL Technologies' third quarter profit is seen rising only half a percent sequentially to Rs 2,025 crore as margin may shrink by 35 basis points to 19.75 percent due to staggered wage hike and currency headwind.


Rupee revenue during the quarter is likely to increase 2.66 percent quarter-on-quarter to Rs 11,815 crore and dollar revenue may grow 1.6 percent to USD 1,749.5 million, according to average of estimates of analysts polled by CNBC-TV18.


Analysts expect around 50 basis points contribution to revenue from the company's IP partnership with IBM.

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They expect the company to maintain full year revenue growth of 12-14 percent in constant currency and EBIT margin guidance of 19.5-20.5 percent but expected full year dollar revenue growth of 11-13 percent could be brought down by 50 bps due to dollar strength.


Guidance does not include numbers of Geometric and Butler post acquisition or any contribution of IP licensing deal.


Earnings before interest and tax may increase to Rs 2,333 crore in Q3FY17 from Rs 2,318 crore in Q2FY17.


Key factors to watch out for would be management's comments on demand environment; contribution from Butler, Geometric & IP deal, Europe performance, infrastructure management business and pick-up in growth of engineering business.

The stock has been an outperformer in the quarter ended December 2016, rising 3 percent against 4.8 percent fall in TCS, 8.5 percent decline in Infosys shares and 3.6 percent weakness in Wipro.



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First Published on Jan 23, 2017 12:12 pm
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