Q3FY23 Result Update - HCL Technologies - ICICI Direct

HCLT reported strong numbers aided by P&P.

- The company reported 5% QoQ in CC terms while IT services grew 2.1% QoQ in CC terms. P&P grew 30.5% QoQ in CC terms due to seasonality

- EBIT margin at the company level grew ~160 bps QoQ to 19.6%

- Reported steady TCV of US$2.3 billion (bn), down 1.6% QoQ & up 9.9% YoY

Key triggers for future price performance

- The company continues to win multiyear deals in Cloud transformation, cyber security, etc, as new deal bookings continue to be strong

- Revenue guidance of 13.5-14% revenue growth in CC for FY23E at the company level & IT services guidance of 16-16.5% provided visibility for steady growth

- Revival of P&P business is critical as it is a high margin business

- With improvement in large deal wins, vendor consolidation opportunity, expansion in geographies, investment in sales & capabilities, we expect HCLT to register 12.3% CAGR in revenues over FY22-25E

For details, click on the link below: Link to the report

Source : Equity Bulls

Keywords

HCLTechnologies ICICIDirect Q3FY23 ResultUpdate