Motilal Oswal: HCL Tech Q1 Margin Beat; Encouraging Guidance  
Employees walk through the deserted HCL Technologies Ltd. Jigani campus in Bengaluru, India (Photographer Samyukta Lakshmi/Bloomberg)

Motilal Oswal: HCL Tech Q1 Margin Beat; Encouraging Guidance  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy

Motilal Oswal Report

HCL Technologies reported Ebitda margin expansion over 20 basis point QoQ despite the Covid-19 disruption, which is impressive. Notably, it had reported margin expansion even in Q4 FY20, when most other large companies had witnessed contraction. A decent increase in net new deal wins and a robust deal pipeline over 40% QoQ comfort us. HCLT surprised us by reinstating revenue growth over 1.5–2.5% Compounded Quarterly Growth Rate, Constant Currency) and Ebit margin guidance (19.5–20.5%). Besides bringing back performance visibility, it further hinted that the worst was behind.

Revenue decline was in-line with estimates. As expected, Engineering Services -9% QoQ, CC was the biggest overhang on revenue this quarter. While the IT and Business Services segment declined approximately 8% QoQ (CC), the Products and Platforms business remained resilient (-2% QoQ, CC).

Click on the attachment to read the full report:

Motilal Oswal HCLT Result Update.pdf


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 brokerage 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.