HCL Tech Q3 Review - Margins To Be Lower Than Pre–Covid Level: ICICI Securities

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). .Click on the attachment to read the full report:.DISCLAIMERThis 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 author entity 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.

HCL Tech Q3 Review - Margins To Be Lower Than Pre–Covid Level: ICICI Securities

HCL Tech Q3 Review - Margins To Be Lower Than Pre–Covid Level: ICICI Securities

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