HCL Tech Results Today: HCL Tech Q1 preview: Profit likely to see single-digit growth; FY23 guidance may stay intact

HCL Tech is expected to retain a 12-14 per cent revenue growth guidance and an 18-20 per cent EBIT margin guidance for FY2023, analysts said, adding that management commentary on the product and platform business would be among key things to watch out for.

YES Securities sees

to log a 1.7 per cent YoY rise in net profit at Rs 3,270 crore on a 17.9 per cent rise in net sales at Rs 23,659.60 crore. It expects growth in product business to be muted, but IT services would be able to maintain growth momentum.

Sharekhan, which sees profit growing 0.7 per cent YoY to Rs 3,238 crore, feels the outlook on the product business, given its lacklustre performance in the past few quarters, will be keenly followed. It sees Ebit margin at 21.4 per cent from 24.5 per cent YoY.

The brokerage expects constant currency revenue growth of 2.6 per cent sequentially and cross-currency headwinds of 170 basis points. The dollar revenue is expected to grow 0.9 per cent QoQ. We expect growth would be driven by IT services and ERD business, while product business is expected to remain flat sequentially, it said, adding that growth in service business would be driven by the ramp-up of deals won earlier.

Emkay Global sees profit after tax at Rs 3,464.40 crore, up 7.8 per cent YoY over Rs 3,594 crore. Net sales can rise 16.5 per cent YoY to Rs 23,369.6 crore from Rs 20,068 crore, it said.

“We expect 0.9 per cent sequential dollar revenue growth after factoring in 170 basis points cross-currency headwinds. The services business would drive growth on the back of healthy deal wins. The products business should report a moderate seasonal recovery,” the brokerage added.

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