Revenue from operations during the quarter grew 1.8 percent to Rs 19,642 crore compared to Rs 19,302 crore in the previous quarter.
‘); $ (‘#lastUpdated_’+articleId).text(resData[stkKey][‘lastupdate’]); //if(resData[stkKey][‘percentchange’] > 0){ // $ (‘#greentxt_’+articleId).removeClass(“redtxt”).addClass(“greentxt”); // $ (‘.arw_red’).removeClass(“arw_red”).addClass(“arw_green”); //}else if(resData[stkKey][‘percentchange’] = 0){ $ (‘#greentxt_’+articleId).removeClass(“redtxt”).addClass(“greentxt”); //$ (‘.arw_red’).removeClass(“arw_red”).addClass(“arw_green”); $ (‘#gainlosstxt_’+articleId).find(“.arw_red”).removeClass(“arw_red”).addClass(“arw_green”); }else if(resData[stkKey][‘percentchange’] 0) { var resStr=”; var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .get( “//www.moneycontrol.com/mccode/common/rhsdata.html”, function( data ) { $ (‘#backInner1_rhsPop’).html(data); $ .ajax({url:url, type:”POST”, dataType:”json”, data:{q_f:typparam1,wSec:secglbVar,wArray:lastRsrs}, success:function(d) { if(typparam1==’1′) // rhs { var appndStr=”; var newappndStr = makeMiddleRDivNew(d); appndStr = newappndStr[0]; var titStr=”;var editw=”; var typevar=”; var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’); var phead =’Why add to Portfolio?’; if(secglbVar ==1) { var stkdtxt=’this stock’; var fltxt=’ it ‘; typevar =’Stock ‘; if(lastRsrs.length>1){ stkdtxt=’these stocks’; typevar =’Stocks ‘;fltxt=’ them ‘; } } //var popretStr =lvPOPRHS(phead,pparr); //$ (‘#poprhsAdd’).html(popretStr); //$ (‘.btmbgnwr’).show(); var tickTxt =’‘; if(typparam1==1) { var modalContent = ‘Watchlist has been updated successfully.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //var existsFlag=$ .inArray(‘added’,newappndStr[1]); //$ (‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’); //if(existsFlag == -1) //{ // if(lastRsrs.length > 1) // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’); // else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; //$ .each(d.ac,function(i,v) //{ // accStr+=”+v.nm+”; //}); $ .each(d.data,function(i,v) { if(v.flg == ‘0’) { var modalContent = ‘Scheme added to your portfolio.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //$ (‘#acc_sel_port’).html(accStr); //$ (‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’); //$ (‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false); // //if(call_pg == “2”) //{ // adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //else //{ // adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //$ (‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′); //$ (‘#mcpcp_addprof_info’).html(adtxt); //$ (‘#mcpcp_addprof_info’).show(); glbbid=v.id; } }); } }); } else { AFTERLOGINCALLBACK = ‘pcSavePort(‘+param+’, ‘+call_pg+’, ‘+dispId+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function commonPopRHS(e) { /*var t = ($ (window).height() – $ (“#” + e).height()) / 2 + $ (window).scrollTop(); var n = ($ (window).width() – $ (“#” + e).width()) / 2 + $ (window).scrollLeft(); $ (“#” + e).css({ position: “absolute”, top: t, left: n }); $ (“#lightbox_cb,#” + e).fadeIn(300); $ (“#lightbox_cb”).remove(); $ (“body”).append(”); $ (“#lightbox_cb”).css({ filter: “alpha(opacity=80)” }).fadeIn()*/ $ (“#myframe”).attr(‘src’,’https://accounts.moneycontrol.com/mclogin/?d=2′); $ (“#LoginModal”).modal(); } function overlay(n) { document.getElementById(‘back’).style.width = document.body.clientWidth + “px”; document.getElementById(‘back’).style.height = document.body.clientHeight +”px”; document.getElementById(‘back’).style.display = ‘block’; jQuery.fn.center = function () { this.css(“position”,”absolute”); var topPos = ($ (window).height() – this.height() ) / 2; this.css(“top”, -topPos).show().animate({‘top’:topPos},300); this.css(“left”, ( $ (window).width() – this.width() ) / 2); return this; } setTimeout(function(){$ (‘#backInner’+n).center()},100); } function closeoverlay(n){ document.getElementById(‘back’).style.display = ‘none’; document.getElementById(‘backInner’+n).style.display = ‘none’; } stk_str=”; stk.forEach(function (stkData,index){ if(index==0){ stk_str+=stkData.stockId.trim(); }else{ stk_str+=’,’+stkData.stockId.trim(); } }); $ .get(‘//www.moneycontrol.com/techmvc/mc_apis/stock_details/?sc_id=’+stk_str, function(data) { stk.forEach(function (stkData,index){ $ (‘#stock-name-‘+stkData.stockId.trim()+’-‘+article_id).text(data[stkData.stockId.trim()][‘nse’][‘shortname’]); }); });
HCL Technologies share price fell 3 percent in early trade on April 26 after the company reported muted numbers for the fourth quarter of fiscal 2021.
IT service company on April 22, reported a 25.6 percent sequential decline in consolidated profit at Rs 2,962 crore for the quarter ended March 2021, dented by wage hikes and a one-time bonus of over Rs 700 crore. Profit in the December quarter 2020 was Rs 3,982 crore.
Revenue from operations during the quarter grew 1.8 percent to Rs 19,642 crore compared to Rs 19,302 crore in the previous quarter, while the revenue in dollar terms rose 3 percent sequentially to $ 2,696 million thereby, missing CNBC-TV18 poll estimates of 3.6 percent growth on a QoQ basis.
Also Read – HCL Technologies Q4 profit falls 26% QoQ to Rs 2,962 crore; firm expects FY22 revenue to grow in double digits in constant currency
Here is what brokerages have to say about the stock and company after Q4 earnings:
JPMorgan | Rating: Overweight | Target: Rs 1,190
The brokerage cut the FY22-23 EPS estimate by 4-5% led by margin moderation. It remains positive on the company due to long-term growth durability.
The success in applications, digital services and deal wins will aid the growth. The company remains a key GARP play on IT spend recovery, it added.
CLSA | Rating: Buy | Target: Cut to Rs 1,150 from Rs 1,220
The revenue growth visibility and inexpensive valuations make risk-reward attractive. CLSA cut the FY22/FY23 EPS forecast by 3%/2%.
Goldman Sachs | Rating: Neutral | Target: Rs 975
The brokerage cut the FY22-23 EPS estimates by up to 5% and sees potential downside risk to street EPS estimates.
P&P business has lower organic growth potential, while engineering business will also see a gradual revival, it said.
HSBC | Rating: Buy | Target: Rs 1,230
Q4 was a tad light on expectations, but deal wins were strong. Also, the pipeline is robust for IT services.
Products business seemed to have hit a bump and may worry the market again. The FY22 guidance is broadly in line, though not a positive surprise.
Kotak Institutional Equities | Rating: Add | Target: Rs 1,080
The brokerage cut FY22-23 EPS estimates by 1-3%. It retained a constructive rating on the back of inexpensive valuations.
Macquarie | Rating: Outperform | Target: Rs 1,250
Q4 missed consensus estimates at both revenue and margin level. The strong positive from Q4 is the robust deal bookings. Macquarie trimmed FY22-23 EPS estimates and target by 2%.
Prabhudas Lilladher | Rating: Buy | Target: Rs 1,010
We believe the company will continue to trade at a higher discount to TCS/INFY/WIPRO on account of lower revenue growth (11% in FY22) and lower profitability.
We have cut our estimates by 7%/4% for FY22/23E on account of low revenue acceleration as compared to peers, cut in margin estimates (-100bps for both years), higher ETR in FY22/23. Due to the inability to maintain profitability post COVID we have reduced our target PE to 18X from 20X, the brokerage said.
Sharekhan | Rating: Buy | Target: Rs 1,200
We tweaked earnings estimates for FY2022E/FY2023E to factor in the lag in headline estimates, lower-than-expected EBIT margin guidance, the retirement of a couple of products and strong deal wins.
However, the strong deal bookings, a healthy deal pipeline, strong net employee addition and rising spends on transformation initiatives by clients would help HCL Tech deliver strong revenue growth in FY2022E.
At 09:28 hrs, HCL Technologies was quoting at Rs 940.80, down Rs 15.00, or 1.57 percent on the BSE.
The share touched a 52-week high of Rs 1,073.55 and a 52-week low of Rs 463.45 on 13 January 2021 and 23 April 2020, respectively.
Currently, it is trading 12.37 percent below its 52-week high and 103 percent above its 52-week low.
Also read our in-house research team’s analysis of HCL Tech’s results
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
