HCLTech Q2 Results Review - An All Round Show: IDBI Capital

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..IDBI Capital Report.HCLTech Ltd.'s Q2 FY25 revenue beats the street’s estimates. The growth was broad-based, mainly driven by manufacturing, telecom, retail and technology across geos (USA/Europe) except rest of world. We have seen some pressure on financial services due to recent divestment to State street. Company is in line with their three-year strategy road map. Deal total contract value during the quarter stood at $2.2 billion, a mix of small/large deals. Majority of the deal wins are embedded with full stack AI capabilities. Management indicated that improved demand environment as compared to the last year led to higher discretionary spends in FY25 mainly driven by BFSI/TMT. Management revised its full year guidance to 3.5%-5% YoY revenue growth with 50 bps increment at lower end & 18-19% margins on the back of operational efficiency. Hence, we assume coverage of the stock with a target price of Rs 1,950 (28 times FY26E EPS), with a Hold rating on the stock with a limited upside potential as the stock has rallied in the recent past..Click on the attachment to read the full report:.HCLTech Q2 Results Review - Beat On All Counts; Set To Achieve Top End Of FY25 Guidance: 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 Q2 Results Review - An All Round Show: IDBI Capital

The company has multiple levers like higher utilisation, pyramid utilizsation and offshoring to drive margins, says the brokerage.

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HCLTech Q2 Results Review - An All Round Show: IDBI Capital

The company has multiple levers like higher utilisation, pyramid utilizsation and offshoring to drive margins, says the brokerage.

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