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HCL Tech Q2 Review - Total Contract Value, Headcount Suggest Acceleration: Dolat Capital

HCL Tech Q2 Review - Total Contract Value, Headcount Suggest Acceleration: Dolat Capital

The HCL Technologies LTD. Jigani campus in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)
The HCL Technologies LTD. Jigani campus in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

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Dolat Capital Report

HCL Technologies Ltd. reported revenue growth of 3.5% in constant currency terms (our estimate: 4%) as revenues got impacted in the products and platform segment due to poor closures (down 8% QoQ), while IT services business grew by 5.2% QoQ.

Operating profit margin at 19.0% were below our estimate (our estimate: 19.2%) largely on account of weak P&P revenues that led to its segment margins to decline from 23.7% to 19.4% while segment margins for IT services remained largely flat at 18.9%.

HCL Tech has retained operating profit margin guidance at 19%-21%.

Guided double-digit growth, which along with strong net new total contract value wins implies potential for improved growth performance hereon and potential acceleration in FY23 as well.

Click on the attachment to read the full report:

Dolat Capital HCL Tech Q2FY22 Result Update.pdf

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