Trade Nivesh Shares of HCL Technologies fell as much as 4.2 percent, the most in over five months, to Rs 1,088. The stock was the worst performer on Sensex and Nifty after announcing its March quarter results.
Key Earnings Highlights (Q4, QoQ)
Dollar revenue up 3.5 percent at $2278 million.
Revenue up 1.9 percent to Rs 15,990 crore.
Net profit down 2.1 percent to Rs 2,550 crore.
Net profit down 1.7 percent to Rs 2,568 crore (adjusted).
EBIT down 1.5 percent to Rs 3,039 crore.
Margins at 18.9 percent from 19.6 percent (adjusted).
FY20 Revenue guidance of 14 to 16 percent (constant currency terms).
Here’s what analysts had to say after HCL technologies announced its fourth quarter results:
Maintained ‘Buy’ with a price target of Rs 1,380.
Sharp revenue beat led by organic recovery, organic guidance conservative.
Margins slip slightly; 2019-20 guide sharply lower from one-off IBM transition costs.
Digital accelerates but products impacted by seasonality.
Rebounding organic growth and undemanding valuation.
Morgan Stanley
Maintained ‘Underweight’ with a price target of Rs 931.
Q4 and FY20: better revenue growth but weaker margin.
Do not expect march quarter results and 2019-20 guidance to have any material impact on earnings estimates.
Key Earnings Highlights (Q4, QoQ)
Dollar revenue up 3.5 percent at $2278 million.
Revenue up 1.9 percent to Rs 15,990 crore.
Net profit down 2.1 percent to Rs 2,550 crore.
Net profit down 1.7 percent to Rs 2,568 crore (adjusted).
EBIT down 1.5 percent to Rs 3,039 crore.
Margins at 18.9 percent from 19.6 percent (adjusted).
FY20 Revenue guidance of 14 to 16 percent (constant currency terms).
Here’s what analysts had to say after HCL technologies announced its fourth quarter results:
Maintained ‘Buy’ with a price target of Rs 1,380.
Sharp revenue beat led by organic recovery, organic guidance conservative.
Margins slip slightly; 2019-20 guide sharply lower from one-off IBM transition costs.
Digital accelerates but products impacted by seasonality.
Rebounding organic growth and undemanding valuation.
Morgan Stanley
Maintained ‘Underweight’ with a price target of Rs 931.
Q4 and FY20: better revenue growth but weaker margin.
Do not expect march quarter results and 2019-20 guidance to have any material impact on earnings estimates.
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