HCL Technologies' Q3 Earnings: What You Need To Know
As predicted, HCL Technologies Limited (HCLTech) is set to report its Q3 earnings today, with expectations of decent revenue growth driven by seasonal tailwinds from renewals in its products business. Here's a summary of what you need to know:
Key Highlights
- Revenue Growth: Expected to grow 4-5% quarter-over-quarter (QoQ) and 4.5% year-over-year (YoY), driven by strong sales in the IT services, engineering and R&D, and products and platforms segments.
- Net Profit: Anticipated to rise by 13-15%, supported by steady growth in revenue and cost management.
- EBIT Margin: Expected to expand by 150 basis points QoQ to around 20.1%, driven by seasonally strong sales of software services, as well as operational efficiency measures.
- Cross-Currency Impact: Estimated to incur a headwind of around 10-15 bps due to the impact of currency fluctuations.
Financial Estimates
Based on analyst estimates, here's what you can expect from HCLTech's Q3 numbers:
| Segment | Estimate | | --- | --- | | IT Services | ₹1.25 trillion (up 12-14% YoY) | | Engineering and R&D | ₹24 billion (up 7-9% YoY) | | Products and Platforms | ₹27 billion (up 30-35% YoY) |
What It Means For the Stock
The expected decent Q3 earnings, combined with a strong historical trend of growth in HCLTech's core IT services business, could lead to an upbeat trading day. However, investors should keep in mind that analyst estimates can be subject to change and are based on various assumptions.