Moneycontrol
HomeNewsBusinessEarningsHCLTech Q4 Earnings Preview: Revenue flat despite services support, profit to be hit as products business drags
Trending Topics

HCLTech Q4 Earnings Preview: Revenue flat despite services support, profit to be hit as products business drags

Revenue growth will be driven by the services business, which was boosted by the Verizon deal. In August 2023, HCL Tech signed a $2.1 billion deal with Verizon to provide managed network solutions to its global enterprise customers.

April 26, 2024 / 00:46 IST
Story continues below Advertisement
The fall in the high margin products business would also hit HCLTech's fiscal fourth quarter net profit.

Information technology (IT) major HCL Technologies is expected to report a tepid Q4, with flattish revenues quarter-on-quarter (QoQ). Its products and platforms (P&P) business is expected to drag down its earnings, even as the services business is expected to provide some succour. The fall in the high-margin P&P business would also hit HCLTech's fourth quarter net profit. The company is scheduled to announce its January-March financial results on April 26.

HCL Technologies is expected to report a net profit of Rs 4,054.71 crore  in Q4 FY24, down 6.78 percent QoQ, according to the average estimate of seven brokerages. The company is expected to clock revenues of Rs 28,552.64 crore, up only 0.37 percent QoQ. Its EBIT margin may fall  152 basis points (bps) QoQ, to 18.18 percent.

Story continues below Advertisement

HCLTech Q4 Results Preview

Revenue growth will be driven by the services business, which was boosted by the Verizon deal. In August 2023, HCLTech signed a $2.1 billion deal with Verizon to provide managed network solutions to its global enterprise customers.