HCL Technologies - FY22 Ebit Margin Outlook Disappoints: IDBI Capital
A monitor displays a health notice to employees at an entrance to a building at the HCL Technologies Ltd. Jigani campus in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

HCL Technologies - FY22 Ebit Margin Outlook Disappoints: IDBI Capital


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IDBI Capital Report

HCL Technologies Ltd.'s Q4 FY21 revenue growth of 2.5% QoQ in constant currency was in-line with our forecast of up 2.9%.

However, Ebit margin of 16.6%, down 630 basis points QoQ (20.3% excluding-one time pay out to employees) was a big miss to our forecast of 19.2%.

As a result, earnings per share of Rs 8.8, down 40%/24% QoQ/YoY was also a big miss.

For FY22, the company has guided for a double-digit revenue growth in constant currency, in-line with our expectation.

However, Ebit margin guidance of 19% to 21% (versus 21.3% excluding-one time payout to employees for FY21) is lower than our expectation.

Click on the attachment to read the full report:

IDBI Capital HCL Technologies Q4FY21 Result Update.pdf


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