HCL Technologies - Underwhelming Q4 Performance, Outlook: ICICI Securities
The cafeteria stands deserted at the HCL Technologies Ltd. Jigani campus in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

HCL Technologies - Underwhelming Q4 Performance, Outlook: 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 disappointments across the board – revenue growth, margins and outlook.

Organic growth (up 1.6% QoQ, constant currency) was tepid and in-line with a typical March quarter even before the pandemic.

Like Tata Consultancy Services Ltd. and Infosys Ltd., muted growth in March 2021 further strengthens our anti-consensus argument that industry growth rates are unlikely to accelerate going forward (versus pre-Covid-19).

Both revenue growth and margin guidance bands are unusually abstract and underwhelming.

It should be noted that the company was one of the very few companies that came out with definitive guidance bands in June 2020 amid peak Covid-19 uncertainty.

Click on the attachment to read the full report:

ICICI Securities HCL Technologies Q4FY21 Result Review.pdf

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