For 3QFY2017, HCL Tech posted numbers almost in-line with expectations. On
the revenue front, the company posted a 1.3% sequential growth in USD revenues
to US$1,745mn (US$1,749mn expected) v/s US$1,722mn in 2QFY2017.
Revenue in Constant Currency (CC) was up 3.0% qoq. On EBIT front, the
company posted an EBIT of 20.4% (20.0% expected) v/s 20.1% in 2QFY2017,
expansion of 30bps qoq. Consequently, PAT came in at 2,070cr (in-line with
expectation) v/s 2,014cr in 2QFY2017, a growth of 2.8% qoq. On guidance
front, the company guided for FY2017 revenues to grow between12-14% using
the average exchange rates for FY2016. The expected Operating Margin (EBIT)
for FY2017 continues to be in the range of 19.5-20.5% post consummation of
acquisitions. We maintain our Buy rating on the stock.