HCL Technologies Q4 Review - Traction In Services To Cushion The Pain In Products: Motilal Oswal
The HCL Technologies LTD. Jigani campus in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

HCL Technologies Q4 Review - Traction In Services To Cushion The Pain In Products: Motilal Oswal

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.

Motilal Oswal Report

HCL Technologies Ltd. delivered in line revenue growth (2.5% QoQ constant currency) in Q4 FY21, led by strong traction in IT Services (up 4.4%), but partially offset by muted engineering research and development (up 0.7%) and a fall in products and platforms (down 4.9%) due to seasonality and client-specific weakness.

Ebit margin (adjusted for one-time bonus impact of 370 basis points) fell 250 bps QoQ to 20.4% on wage hike (60 bps), seasonality in products and platforms (70 bps), higher fresher hiring (60 bps), forex (20 bps), and impairment charges (60 bps).

The management guided at double-digit U.S. dollar revenue growth and 19-21% as the Ebit margin band for FY22.

Click on the attachment to read the full report:

Motilal Oswal HCL Technologies Q4FY21 Result Review.pdf

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