HCL Technologies Ltd is set to announce its Q3 FY2025 financial results post-market hours today. Following muted earnings but strong deal wins from its larger peer Tata Consultancy Services Ltd, all eyes are on HCL Tech to see if it can outperform market expectations.
Key Expectations:
- Revenue Growth:
- Expected to rise between 4.6-5.5% QoQ in constant currency (CC), driven by seasonality in its software business and one-month consolidation of the Communications Technology Group (CTG) acquisition.
- Revenue forecast:
- Prabhudas Lilladher: ₹30,200 crore, up 6% YoY from ₹28,450 crore.
- JM Financial: ₹30,393 crore, a 5.3% YoY rise.
- Net Profit:
- Prabhudas Lilladher: ₹4,520 crore, a 3.9% YoY growth from ₹4,350 crore.
- JM Financial: ₹4,593.50 crore, up 8.5% YoY.
- EBIT Margin:
- Prabhudas Lilladher: 19.2%, down 54 bps YoY but up 62 bps QoQ.
- JM Financial: 19.1%, indicating slight pressure YoY but improvement QoQ.
- Deal Wins:
- Anticipated in the range of $2-2.5 billion, showcasing healthy demand.
Key Drivers:
- Software Business Seasonality: Strong performance expected from its Product & Platform segment.
- CTG Acquisition: Contribution of $20 million from one-month consolidation.
- Cost Pressures: Wage hikes and furloughs may weigh on margins, but seasonal software revenue could offset some impact.
Dividend and Earnings Call Timing:
- Dividend Announcement: Expected alongside the results as part of HCL Tech’s ongoing commitment to shareholder returns.
- Earnings Call Timing: Scheduled for post-results announcement to provide insights into performance and future outlook.
Analyst Commentary:
- JM Financial: Highlights incremental contributions from CTG and positive seasonal factors, but flags wage hikes as a headwind.
HCL Tech’s Q3 results will set the tone for investor sentiment, especially with expectations of robust growth and potential upward revisions in FY25 revenue guidance.
TOPICS:
HCLTech