Updated Jan 14, 2021 | 19:45 IST
Expect strong Q3 for HCL tech with revenue growth to be ahead of Q3 guidance. Investors would watch out for upward revision to revenue growth and EBIT margin guidance.
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Key Highlights
Revenue growth in constant currency terms (CC) is expected at 3% QOQ ahead of guidance of 1.5-2.5% QOQ CC
Margins largely stable QOQ; Strong deal momentum is expected along with overall positive commentary
Watch for upward revision to revenue, EBIT margin guidance & outlook on demand trends & capital allocation
ET NOW Poll expects HCL Technologies to post strong Q3 with revenue growth expected to be ahead of the guidance. Revenue growth in constant currency terms (CC) is expected at 3% QOQ ahead of guidance. In the last quarter management had shared revenue guidance of 1.5% to 2.5% QOQ in CC for Q3 and Q4. Strong deal momentum is expected along with positive commentary. EBIT margin is expected to largely remain stable QOQ around 21.4% to 21.5% as compared to 21.6% in the last quarter and will expand on a year on year basis. Impact of wage hike is likely to be offset by Increasing digital mix, increasing utilization and operational efficiencies. Profit is seen at Rs 3227 crore growth of 2.7% QOQ.