HCLTech Q1 Results Review - In Low Gear: HDFC Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Along expected lines, HCLTech Ltd. delivered a soft quarter (revenue/margin decline) with a growth uptick expected in Q3 FY25E. The deal transition impact from onshore to offshore and State Street exit is impacting FY25 growth by ~1.5% while Verizon’s impact is balancing out, resulting in a moderating growth trend in FY25E. Guidance was maintained at 3-5% constant currency growth for FY25E which implies 0.9% to 2.3% compound quarter growth rate over Q2-Q4 FY25 with ~0.8% negative impact in Q2 on account of State Street exit. In addition to the offshoring impact of a large BFSI program, weakness exacerbated in-the manufacturing vertical with impact in the automotive sub-segment including the recent acquisition of ASAP, seasonal productivity benefits and lower asset based revenue (hardware/software cost) andLifesciences and healthcare vertical with project-specific weakness in MedTech client. .HCLTech’s strong credentials in the ISV ecosystem, dominance in sub-segments (infra, ERS), and improving operating performance over the medium term keep us constructive. Mid-single-digit growth in earnings for FY25E may limit the upside. Maintain Add with target price of Rs 1,575, at 22 times June-26E earnings per share..Click on the attachment to read the full report:.HCLTech Q1 Review - Results Beat; FY25 Guidance Retained: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HCLTech Q1 Results Review - In Low Gear: HDFC Securities

The company’s strong credentials in the ISV ecosystem, dominance in infra, ERS and improving operating performance over the medium term keep the brokerage constructive.

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HCLTech Q1 Results Review - In Low Gear: HDFC Securities

The company’s strong credentials in the ISV ecosystem, dominance in infra, ERS and improving operating performance over the medium term keep the brokerage constructive.

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