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

Bookmark

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.

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

DISCLAIMER

This 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.