HCL Tech Q3 Results Review- Strong Seasonality In Software Segment Drove Financial Performance: Yes Securities

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. .Yes Securities Report.HCL Technologies Ltd. reported strong sequential performance. Both, revenue and operating margin were above estimates. The services segment (88% of revenue) grew by 2.2% QoQ in constant currency terms. The software segment had strong quarter due to seasonality factors (grew 30.5% QoQ in CC terms). The revenue growth was led by strong performance in life science and healthcare vertical (up 5.5% QoQ in CC terms). There was sequential improvement in Ebit margin (up 165 basis points QoQ) led by improving employee pyramid and strong performance in high margin software segment. Employee attrition has started moderating as last twelve months attrition was down 210 bps QoQ to 23.8%. We believe that the long-term demand story remains intact led by IT transformation and cost optimisation projects. However, the macroeconomic factors in the U.S. and Europe remain concerning and that is reflected in clients being more watchful of the situation and consequently, we expect moderation in growth in near term. HCL Tech is well on track to meet its targeted 18-18.5% Ebit margin guidance for FY23. .Click on the attachment to read the full report:.HCL Tech Q3 Results: Revenue Up 8.1%, Profit Beats Estimates In Seasonally Weak Quarter.More Research Reports On HCL Tech Q3 FY23 Results Rreview.Good Performance, Valuation Attractive: Motilal Oswal Product, ER&D Key Drag Due To Macro Challenges: IDBI CapitalSoftware Shines; Solid Beat Across Lines; Retains Guidance: Dolat Capital.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- Strong Seasonality In Software Segment Drove Financial Performance: Yes Securities

We believe that the long-term demand story remains intact led by IT transformation and cost optimisation projects.

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