BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
HCL Technologies Ltd. has reported strong beat on revenues, growing 7.6% QoQ (constant currency). Though growth was broad based, performance was largely on the back of strong traction in products and platform segment which grew 24.5% QoQ (constant currency).
Services margin for Q3 FY22 declined 190 basis points QoQ, largely due to wage hikes and supply-side challenges, which was fully offset by positive operating leverage in product and platforms segment resulting in overall margins being flat sequentially.
HCL Tech's management called out a downside risk to their Ebit margin guidance of 19-21% for FY22 due to need for increased investments. This corroborates our argument that industry is unlikely to see any meaningful margin expansion in the new normal (versus pre-Covid-19).
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