Sharekhan's research report on HCL Technologies
HCL Tech reported revenue of $3,533 million, up 3.8% q-o-q/4.1 % y-o-y in CC terms, missing our estimate of $3,561 million. EBIT margin expanded by ~90 bps q-o-q to 19.5%, beating estimates of 19.3%. New deal wins TCVs stood at $2,095 million, down 6% q-o-q/up 9% y-o-y. Management has raised the lower end of its revenue growth guidance to 4.5-5% from 3.5-5% on CC terms while maintaining EBIT margin at 18-19% for FY25. For services, the organic ask rate for Q4 is -1.3-0.6%.
Outlook
We maintain BUY with an unchanged PT of Rs. 2,180 (valued at 28x Dec26E EPS). At CMP, the stock trades at 30.5/28/24.6x its FY25/26/27E EPS.
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