HCL Tech Q3 Results Review - Revenue, Margin Beat Driven By HCL Software: Centrum Broking

Centrum Broking Research

HCL Technologies Ltd. reported results better than our estimates, both on revenues and margins.

Revenue was Rs 267,000 million which was 2.9%/2.6% above our/consensus estimate. U.S. dollar revenue was $3,244 million which was up 5.3% QoQ and above our estimates of $3,161 million.

Growth was driven by the HCL Software business (12.3% of revenues) which increased by 30.5% QoQ in constant currency. Ebit margins improved to 19.6%, up 100/up 80 bps above our/consensus estimates.

We now expect HCL Tech's revenue/Ebitda/profit after tax to grow at a compound annual growth rate of 13%/13%/13% between FY22-25E and raise FY23E/24E/25E earnings per share estimates by 3%/3.5%/3.3%.

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More Research Reports On HCL Tech's Q3 FY23 Results Review

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• Product, ER&D Key Drag Due To Macro Challenges: IDBI Capital

• Software Shines; Solid Beat Across Lines; Retains Guidance: Dolat Capital

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