HCL Technologies - Underwhelming Q4 Performance, Outlook: ICICI Securities
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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.
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