HCL Technologies - Quarterly estimates - ICICISecurities

- Expect consolidated USD revenue to grow 3.2% QoQ to USD1,229mn with ~70bps QoQ cross currency impact. Growth should be largely driven by the IMS and custom application segments with Enterprise and engineering expected to remain subdued.

- EBIT margin expected to improve 50bps QoQ to 20.4% due to benefits of ~3.5% QoQ currency depreciation (Re/$) offset partially by visa costs to be incurred during the quarter. HCL's wage cycle starts from July.

- Estimate ~USD1mn forex gain in the quarter compared with ~USD4.3mn forex gain in the previous quarter.

- PAT will likely grow 6% QoQ due to improvement in EBIT (9.5% QoQ higher EBIT) dragged by lower forex gains QoQ.

- Key factors to watch: i) Pipeline and new deal wins especially in deal renewals / restructurings, ii) growth momentum and commentary in discretionary segments like enterprise applications and R&D services, iii) addition of freshers during the quarter and iv) EBIT margin roadmap.

Source : Equity Bulls

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