Meanwhile, a total of 25,75,833 equity shares worth Rs 383.6 crore also changed hands in Wednesday’s trade.
At 12:05 pm, the scrip was trading 2% higher at Rs 1,490 on BSE. The stock has also surged 33% in the past six months, while it has rallied 40% in the last year.
In Q2 FY24, HCL Technologies reported 10% growth in its consolidated net profit at Rs 3,832 crore. The same stood at Rs 3,489 crore in the last year period.
Its revenue from operations during the period rose 8% to Rs 26,672 crore against Rs 24,686 crore in the same period last year.
In Q2, in constant currency terms, revenue was up 1% sequentially and 3% year-on-year (YoY). Segment-wise, services revenue rose 3% (CC), while digital revenue was up 4%.
Here’s what brokerages expect from HCL Technologies’ Q3 results:
Dhruv Mudaraddi, Research Analyst, Stoxbox
We expect HCL’s Q3FY24 revenue to grow in the mid-single digits QoQ driven by the Verizon deal ramp-up, the additional contribution from the ASAP Group acquisition for two months, and the seasonality benefits in the Products and Platform (P&P) business.
EBIT margins are also expected to improve owing to cost efficiencies, seasonal strength in the high-margin P&P business, and forex benefits. However, this improvement will be partly offset by wage hikes, furloughs, and the costs associated with large deal ramp-up.
Axis Securities
We expect HCL Tech to report revenue growth of 6.5% QoQ in rupee terms while delivering an operating margin expansion of 65 bps. Key factors to watch out for are a) Deal TCV/deal pipeline, b) Pricing scenario, and c) Outlook on growth, operating margins, and P&P business.
Sharekhan by BNP Paribas
HCLTech is expected to report sequential revenue growth at 4.4% in CC terms in a seasonally strong quarter, aided by contribution from ASAP Group and ramp-up of the Verizon deal. EBIT margin to improve by ~50 bps QoQ, aided by operational efficiencies and stronger revenues.
YES Securities
Growth to be slightly better due to strong seasonality in the software segment. Commentary on the demand environment would be key to watch out for.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services
With a strong margin outperformance, HCLT remains confident of achieving its margin guidance of 18-19%.
Higher exposure to Cloud, which comprises a larger share of non-discretionary spending, offers better resilience to its portfolio in the current context amid higher demand for Cloud, Network, Security, and Digital workplace services.
We expect HCLT to emerge stronger on the back of healthy demand for these services in the medium term.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)