For 1QFY2018, HCL Tech posted results below expectations on sales front, while EBIT and net profit came in higher than expected. The sales came in at US$1,884mn (v/s. US$1,891mn expected) v/s. US$1,817mn in 4QFY2017, a qoq growth of 3.7% qoq. Revenue in Constant Currency (CC) terms was up 2.6% qoq. The EBIT margin came in at 20.1% (v/s. 19.5% expected) v/s. 20.0% in 4QFY2017, a qoq expansion of 8bps. Thus, PAT came in at `2,171cr (v/s. `2,101cr expected) v/s. `2,325cr in 4QFY2017, a qoq dip of 6.6%. In terms of guidance, the company has re-iterated that FY2018 revenues are expected to grow between 10.5-12.5% in CC, while Operating Margin (EBIT) is expected to be in the range of 19.5-20.5%. We maintain our accumulate.

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