Dolat Capital: HCL Technologies' Free Cash Flow Zooms; Commentary Comforting
The HCL Technologies LTD. Jigani campus stands deserted in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

Dolat Capital: HCL Technologies' Free Cash Flow Zooms; Commentary Comforting

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.

Dolat Capital Report

HCL Technologies Ltd. reported 4.5% QoQ constant currency growth (our estimate 3.8%) led by strong growth across business segments.

Operating profit margin improved by 108 basis points to 21.6% (our estimate 20.7%) helped by operating efficiency (157 basis points) that funded investment in products and platforms 32 basis points and foreign exchange impact 24 basis points.

Profit after tax up 7.5% QoQ at Rs 31.4 billion. Free cash flow generation took significant leap (swing of over 1 billion dollar YoY basis) given strong earnings growth, low Capex/acquisition investments and improved days sales outstanding (by 11 days YoY).

Click on the attachment to read the full report:

Dolat Capital HCL Technologies Q2FY21 Result Update.pdf


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