HCL Technologies on January 12 reported a 20 percent rise in its consolidated net profit for the quarter ended December 2022 (Q3FY23) at Rs 4,096 crore as against Rs 3,442 crore a year back
HCL Technologies’ share price will remain in focus on January 13 as the company posted a better-than-expected result for the third quarter ended December 2022.
HCL Technologies on January 12 reported a 20 percent rise in its consolidated net profit for the quarter ended December 2022 (Q3FY23) at Rs 4,096 crore as against Rs 3,442 crore a year back.
Its consolidated revenue from operations increased 19.61 percent to Rs 26,700 crore against Rs 22,321 crore in the corresponding quarter last year, the company said in an exchange filing.
According to a poll of brokerages, consolidated revenue was expected to come in Rs 26,026 crore, up 16.6 percent year-on-year (YoY) growth, while consolidated profit after tax (PAT) was estimated to increase 10.6 percent YoY to Rs 3,796 crore.
Revenue in terms of constant currency was up 5 percent sequentially and 13.1 percent YoY.
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Here is what brokerages have to say about stock and the company post December quarter earnings:
CLSA
Research house has kept ‘outperform’ rating on the stock with a target at Rs 1,200 per share as the Q3 was well ahead of estimates on all counts.
The beat was mainly due to better-than-expected seasonal strength in HCL Software. The deal wins were strong & management optimistic of sustaining momentum in 4QFY23.
The positive management commentary should give a strong base for FY24.
CLSA noticed improved confidence in margin expansion over FY24. It saw isolated cases of client ramp-downs & softness in parts of engineering services.
The modest valuation & dividend yield were attractive, reported CNBC-TV18.
Citi
Brokerage house has maintained ‘neutral’ rating on the stock with a target at Rs 1,035 per share.
The services business reported a largely in-line quarter, while software business surprised; tends to be volatile QoQ.
The management narrowed revenue & margin guidance, reported CNBC-TV18.
Bernstein
Research firm has kept ‘market perform’ rating on the stock and kept a target at Rs 1,100 per share.
The Q3FY23 strong beat was led by products; while guidance maintained. The strong beat led by high seasonality in P&P business.
Its EBIT margin led by margin tailwinds of product business, reported CNBC-TV18.
JPMorgan
Broking firm has maintained ‘underperform’ rating on the stock with a target price at Rs 880 per share.
The Q4 guidance suggests growth to remain sluggish into CY23. The leading indicators were negative including overall net new deal signing & shallow hiring.
JPMorgan expect company will continue to lose momentum over CY23, reported CNBC-TV18.
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