HCL Tech Q3 Results Review - Software Shines; Solid Beat Across Lines; Retains Guidance: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.HCL Technologies Ltd. reported strong revenue growth momentum of 5% QoQ in constant currency terms (our estimate: 2.5%), where services (IT and engineering research and development – 90% of revenue) grew 2.2% in while HCL Software saw 30.5% CC growth driven by 26 software-as-a-service deals.Operating profit margin at 19.6%, above our estimate of 18.3%, led by favorable revenue mix (seasonal gains in HCL Software), while serviced margins remained stable as gains on forex (70 bps), pyramid optimisation (40 bps), and lower sub-con (60 bps) were offset by furloughs.Net new total contract value wins stood at $2.3 billion in Q3, up 10% YoY (up 13% on nine months-FY23 basis), while annual contract value grew 1.9% YoY. It won 17 large deals – seven in services and 10 in software.Q3 beat, narrowed guidance and large TCV wins raises our confidence in HCL Tech to deliver financial outperformance over FY23-FY25E..Click on the attachment to read the full report:.HCL Tech Q3 Results: Revenue Up 8.1%, Profit Beats Estimates In Seasonally Weak Quarter.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HCL Tech Q3 Results Review - Software Shines; Solid Beat Across Lines; Retains Guidance: Dolat Capital

Operating profit margin at 19.6%, above our estimate of 18.3%, led by favorable revenue mix.

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