HCL Technologies Q1 preview: Net profit likely to decline sequentially

Philip Capital expects HCL Technologies’ IT services to grow by 1.7 percent on a quarter-on-quarter basis in Q1FY24.

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26 Aug, 2025 12:21

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HCL Technologies is expected to report a net profit of Rs 3,782 crore in Q1FY24, according to average of the estimates by Philip Capital, Nirmal Bang, AMP, and HDFC Securities. This is a 5.3 percent decline quarter-on-quarter, and a 8.1 percent increase year-on-year.

The information technology major is scheduled to release its earnings for the April-June period later today.

Dollar revenues are expected to be around $3.27 billion in the April to June quarter, a 0.8 percent growth sequentially and a 7.8 percent growth year-on-year.

Revenue (in Rupees) for the tech company is estimated to be around Rs 26,858 crore in Q1FY24, a 0.4 percent increase quarter-on-quarter and 13.8 percent year-on-year increase, according to a mean consensus of the aforementioned brokerage firms.

Mean Earnings Before Interest Tax (EBIT) margins in Q1FY24 is forecasted to be at 17.7 percent, a 60 basis points decline in margins sequentially. EBIT margins, however, are expected to rise by 60 basis points year-on-year in Q1FY24, according to the brokerage firms. One basis point is one-hundredth of a percent.

“HCL Technologies was one of the few companies with healthy headcount addition and it would not be surprising to see controlled hiring for 1QFY24 or even a net employee decline on a quarter-on-quarter basis,” said Nirmal Bang in a report dated July 1.

Philip Capital expects HCL Technologies’ IT services to grow by 1.7 percent on a sequential basis in Q1FY24. Engineering Research and Development services is expected to fall by 4 percent sequentially in the April to June quarter. This is because of ramp down in verticals like Hi-tech and Telecom.

HCL Technologies had bagged a deal from Heubach Group for deployment of hybrid cloud, cybersecurity solutions, and end-user services in April this year. Heubach Group is a global pigment manufacturer headquartered in Austria.

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