HCL Tech Q3 Review: Growth Drivers Largely In Place, Outlook Encouraging, Says Dolat Capital
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Dolat Capital Report
HCL Technologies Ltd. reported 3.5% QoQ constant currency growth (our estimate 2.4%) led by strong growth across segments with product and platforms leading the pack (8.9% QoQ).
Operating profit margin improved by 127 basis points to 22.9% (our estimate 21.0%) helped by cost control and improved business mix.
Announced Dividend of Rs four per share.
The company has upped the Ebit guidance by 100 basis points/50 basis points to 21% to 21.5% despite upcoming wage hike in Q4 and sales investments in P&P business. As it expects incremental off-shoring led tailwinds and sustenance of cost savings.
Revenue Guidance for Q4 at 2-3% is intact on organic basis.
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