HCL Tech Q4: MOST expects PAT to rise 37% at Rs 1149 cr
Motilal Oswal expects HCL Technologies to report a 13.1 percent growth quarter-on-quarter (growth of 36.7 percent year-on-year) in net profit at Rs 1149.4 crore.
July 30, 2013 / 17:59 IST
Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the technology sector. The brokerage house expects HCL Technologies to report a 13.1 percent growth quarter-on-quarter (growth of 36.7 percent year-on-year) in net profit at Rs 1,149.4 crore.
Revenues are expected to increase by 6.6 percent Q-o-Q (up 15.7 percent Y-o-Y) to Rs 6,847.4 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 12 percent Q-o-Q (up 24.1 percent Y-o-Y) to Rs 1,585.8 crore.Motilal Oswal on HCL TechnologiesWe expect revenue growth of 2.7 percent Q-o-Q at HCLT to USD1,223 million, and expect traction in IMS to remain strong, with our estimate of 5.8 percent Q-o-Q to USD377 million. We expect software services revenue of USD793 million, implying growth of 1.2 percent Q-o-Q. Cross currency movements are expected to have a negative impact of 60bp. Our volume growth estimate in software services stands at 1.9 percent Q-o-Q.In rupee terms, we expect revenue growth of 6.6 percent Q-o-Q to INR68.4 billion.HCLT's operating margins are expected to improve during the quarter due to currency; our EBIT margin estimate is 20.6 percent (up 110bp QoQ). Our estimate of SGA is 13.1 percent v/s 13.6 percent in 3QFY13.PAT estimate for the quarter is INR11,494 million, 13.1 percent Q-o-Q. Our PAT margin estimate is 16.8 percent v/s 15.8 percent in 3QFY13.HCLT announced deal signings TCV of over USD1b+ in 3QFY13, which was lower than USD1.5b+ last year. This indicates deceleration in IMS
growth, going forward. Deal signings this quarter would be the most important factor to gauge growth momentum of the company.The stock trades at 11.4x FY14E and 10.9x FY15E EPS. 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!
