HCLTech Q3 Review - Strong Performance With Revenue Guidance For FY24 At 5.0%-5.5% In CC Terms: Yes 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..Yes Securities Report.HCLTech Ltd. reported strong performance for the quarter. Both revenue and Ebit margin was above expectation; HCL software segment (12.3% of revenue) increased by 5.0% YoY in constant currency terms, while engineering research and development and IT services (88.2% of revenue) increased by 4.2% YoY in cc terms. Telecommunication, media and entertainment vertical reported highest sequential growth at 25.9% QoQ in cc terms. The overall revenue increased by 6.0% QoQ in cc terms. There was sequential improvement in Ebit margin (up 124 basis points QoQ) led by decrease in selling, general and administration. Employee attrition continues to moderate as last twelve months attrition was down 140 bps QoQ to 12.8%. .The near term demand environment remains challenging as the macroeconomic factors in the U.S. and Europe remain weak and that is reflected in clients being more watchful of the situation and consequently, that continues to impact near term revenue performance. The decline in employee attrition and improving employee pyramid should support margin in FY24. We estimate revenue compound annual growth rate of 12.5% over FY23‐26E with average Ebit margin of 19.1%. We maintain our 'Add' rating on the stock with revised target price of Rs 1,750/share at 21.0 times on FY26E earnings per share. The stock trades at PER of 21.0 times/18.5 times on FY25E/FY26E EPS..Click on the attachment to read the full report:.HCLTech Q3 Results Review - Exceptional All-Round Performance: Motilal Oswal.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 Q3 Review - Strong Performance With Revenue Guidance For FY24 At 5.0%-5.5% In CC Terms: Yes Securities

Both revenue and Ebit margin was above expectation; HCL software segment increased by 5.0% YoY in constant currency terms,

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HCLTech Q3 Review - Strong Performance With Revenue Guidance For FY24 At 5.0%-5.5% In CC Terms: Yes Securities

Both revenue and Ebit margin was above expectation; HCL software segment increased by 5.0% YoY in constant currency terms,

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