BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
HCL Technologies Ltd. delivered strong revenue growth (4.5% QoQ constant currency terms) on the back of broad-based recovery across geographies, verticals, and services.
Ebit margin expansion (up 110 basis point QoQ), driven by operating leverage, was better than expected.
The company also revised its FY21 margin guidance upward (by 50 basis point to 20–21%) despite a potential wage hike in 3Q/4Q.
This indicates its ability to sustain some amount of margin improvement, which is a positive.
The company reported 15 transformational wins, all from new clients, exhibiting its ability to capture a larger share of client wallets.
In our view, the company would continue to benefit from demand for digital services – especially in cloud migration (digital foundation) work – which should help it deliver 11% revenue growth in FY22.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR