HCL Technologies - Outperformed INFY on all parameters - Microsec

HCL Technologies Ltd (HCL) announced its consolidated Q1 FY2013, September 2012 Quarter, results on 17 October 2012. While the company's top line remained in line with Bloomberg consensus estimates, its bottom line came significantly above the estimates.

A glimpse of HCL's Q1 FY2013 performance is as follows:

With healthy client engagements and strong growth from Americas region, HCL posted 2.9% q-o-q growth in top line, to Rs.6,091 Crores, during Q1 FY2013. Furthermore, despite wage hikes, the company was able to report 21 basis points (bps) sequential, or 509 bps y-o-y, expansion in EBIDTA margins. Led by focus on operations and delivery excellence HCL's EBIDTA Margins improved to 22.2% in Q1 FY2013 compared with 22.0% and 17.1% in Q4 FY2012 and Q1 FY2012, respectively. Expanded margins at operating level also helped the company post impressive 5.0% q-o-q, or 78.1% y-o-y, jump in bottom line to Rs.884.8 Crores during the quarter. In addition, the company declared dividend of Rs.2.0 per share for the quarter, which was its 39th consecutive quarterly dividend. We believe that the company to outperform its larger peer Infosys in the upcoming quarters as well. Given its healthy performance, the stock may continue to witness buying interest in near term.

Source : Equity Bulls

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