HCL Technologies' fourth quarter net profit may increase 8.1 percent quarter-on-quarter to Rs 1,820 crore, according to average of estimates of analysts polled by CNBC-TV18. The bottomline could also get supported by forex gain (against forex loss of Rs USD 3 million in Q3).
The software services provider follows July-June as its financial year. It will announce its earnings on August 3.
Revenue is seen rising 5.3 percent sequentially to Rs 9,762 crore and dollar revenue may climb 3 percent to Rs 1,536.5 crore during the same period. Its peers TCS reported 3.5 percent dollar revenue growth, Infosys 4.5 percent and Wipro 1.1 percent in June quarter.
Dollar revenue growth will be closely watched as it missed estimates in March quarter with no growth in dollar term.
Earnings before interest and tax (EBIT) is expected to grow 7.9 percent quarter-on-quarter to Rs 2,134 crore and margin may expand 53 basis points to 21.86 percent in the quarter gone by. The lack of wage hike may support margin growth.
Analysts expect infrastructure management services (IMS) and engineering services to keep driving growth of the company.
IMS business growth moderated materially over the last 5-6 quarters from around 9 percent to average of 4-5 percent. Even HCL Tech lost its No 1 position in infrastructure services to TCS with annualised revenue of USD 2 billion against USD 2.2 billion for TCS.
However, in case of engineering services, the management (after Q3 earnings) said it would be the next growth driver.
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