Views on HCL Technologies Ltd Q2FY2018 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- IT, Angel Broking):

"HCL Tech, announced numbers for 2QFY2018. On sales the company posted 2.3% sequential growth in USD revenues to US$1,928mn V/s US$1,944mn expected. In Constant currency terms (CC) the company posted a 0.9% QoQ growth. In rupee terms, revenues came in at INR 12,434cr V/s INR 12,558cr, up 2.3% QoQ growth. EBIT margin came in at 19.7% v/s 18.7% expected. Consequently, PAT came in at INR 2,188cr V/s INR 2,171cr expected, a rise of 0.8% QoQ.

FY2018 revenue guidance has been kept at 10.5%-12.5% in constant currency. Operating margin guidance unchanged at 19.5-20.5%.

In terms of the Industries, FSI posted CC QoQ growth of 1.2%, MFG grew by 2.4% QoQ CC, RCL de-grew by 0.5% QoQ CC, Public Services de-grew by 4.6% QoQ CC, Life sciences and Health grew by 1.8% QoQ and Telecommunications, Media, Publishing & Entertainment grew by 1.7% QoQ. In terms of geography, the USA grew by 1.5% QoQ CC, Europe grew by 4.4% CC QoQ, and ROW de-grew by 12.0% QoQ CC.

Strong client addition continued: US$5+ mn clients up by 24, US$10+ mn clients up by 11, US$20+ mn clients up by 2, US$40+ mn clients up by 3, US$50+ mn clients up by 5 and US$100+ mn clients up by 1. We maintain our ACCUMULATE rating on the stock with a target price of INR 1,014."

Shares of HCL TECHNOLOGIES LTD. was last trading in BSE at Rs.859.25 as compared to the previous close of Rs. 870.8. The total number of shares traded during the day was 65255 in over 1431 trades.

The stock hit an intraday high of Rs. 875 and intraday low of 853. The net turnover during the day was Rs. 56172622.

Source : Equity Bulls

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