Shares in HCL Tech may fall post its results according to broking firm Emkay Global. According to the broking firm, HCL Tech’s Mar’21 Quarter Results saw operating performance misses expectations.
“Revenue growth was broadly in line with our expectations while EBITM was 200bps below our expectations and 280bps below consensus estimates. The key positives include dDouble digit growth guidance in constant currency terms for FY22, 19 new large deals signed in Q4 and all time high New deal TCV of US$3.1bn (49% YoY),” the broking firm said.
“HCL Tech reported revenues of US$ 2.70bn, up 3%/6% QoQ/YoY (CC 2.5%/2.6% QoQ/YoY), in-line with expectations of $2.72bn. (TCS Q4FY21 revenues was US$ 5.99bn, 4.2% CC QoQ; Infosys Q4FY21 revenues was US$3.6bn, 2% CC QoQ, Wipro Q4FY21 revenues up by 3% QoQ CC at US$2.1bn)
EBITM declined 630bps QoQ at 16.6% and came 200bps below our expectations due to adverse business mix (product business declined 4.9% QoQ) and higher D&A costs. EBITM declined sequentially due to salary hike, one-time special bonus (Rs7.3bn) and higher D&A costs. (TCS Adj. EBITM expanded 20bps QoQ to 26.8%; Infosys Adj EBITM declined 94bps QoQ to 24.5%, Wipro IT services EBITM declined 60bps QoQ to 21%),” Emkay Global Financials has noted.
The shares of HCL Tech last closed at Rs 955.80 on the National Stock Exchange.
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