Sharekhan's research report on HCL Technologies
Reported revenues stood at $3,364 million, down 1.6% q-o-q/ up 5.6% y-o-y in constant currency (CC) terms, owing to softness in services though it beat our estimates of $3,359 million. EBIT margins contracted ~50 bps q-o-q to 17.1% on lower revenues, beating our estimates by 20 bps. Despite the impact of the State Street International Holdings’ JV divesture, the company remains comfortable with its full-year revenue and margin guidance with growth expected to pick up from Q2FY25.
Outlook
We maintain a Buy with revised price target (PT) of Rs 1,805 (valued at 24xFY26E). At CMP, the stock trades at 24.3/20.7x its FY25/26E EPS.
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