HCL Technologies (HCL Tech) announced its results and they are more or less in
line with expectations. The company posted a 1.9% sequential growth in USD
revenues to US$1,722mn (V/s US$1,726mn expected and V/s US$1,691mn in
1QFY2017). On Constant Currency (CC) basis, the company posted a revenue
growth of 2.8% qoq. The EBIT margins came in at 20.1% (V/s 20.0% expected), a
dip of ~46bp qoq. Consequently, the PAT came in at Rs2,014cr (V/s Rs1,979cr), a
dip of 1.6% qoq. For FY2017, the company gave a revenue growth guidance of
12.0-14.0% in CC terms, which translates into an 11.2% to 13.2% growth in US$
terms. The operating margin (EBIT) for FY’2017 is expected to be in the range of
19.5% to 20.5%. We maintain our Buy rating on the stock.

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