HCL Technologies Q1 results today: The board of directors of HCL Technologies (HCL Tech) will consider paying an interim dividend to shareholders on Tuesday, along with earnings from April-June FY2023. The interim dividend, if declared, will be paid to the shareholders of equity whose names are listed in the register of members of the company or in the registers of the custodians as beneficial owners of the shares on Wednesday 20 July 2022, that’s the record date set for the purpose, the company said in a communication. This will be the second Interim dividend for fiscal year 2022-2023.
In the past 12 months, HCL Technologies Ltd. declared a stock dividend of Rs 44.00 per share. At the current share price of Rs 943.55 (closing price on Monday), it yields a dividend yield of 4.66 percent.
What D-Street Expects
Analysts say the tech gaint is expected to report flat to single-digit year-over-year earnings growth for the June 2022 quarter, despite net sales increasing more than 15 percent. The EBIT margin is decreasing year on year by at least 200 basis points.
YES Securities sees HCL Technologies a 1.7 percent year-over-year increase in net profit at Rs 3,270 crore on a 17.9 percent increase in net sales at Rs 23,659.60 crore. It expects growth in product business to be muted, but IT services could maintain growth momentum.
Emkay Global sees profit after tax at Rs 3,464.40 crore, up 7.8 percent year on year from Rs 3,594 crore. Net sales could rise 16.5 percent year-on-year to Rs 23,369.6 crore from Rs 20,068 crore, it said.
“We expect sequential revenue growth of 0.9 percent in dollar terms, taking into account headwinds of 170 basis points in foreign exchange. The service sector is said to boost growth thanks to healthy deals being secured. The products business should report a moderate seasonal recovery,” the brokerage added.
A review by Prabhudas Lilladher showed that the country’s third-largest IT player in terms of market capitalization can report adjusted net profit of 17.60 percent year-over-year and 9.9 percent quarter-on-quarter. On the other hand, it sees revenue growth of 16.50 percent year-over-year and 3.40 percent quarter-on-quarter during the quarter. The brokerage further believes that the EBITDA margin could contract by 286 basis points year-over-year and by 76 basis points quarter-on-quarter.
“We expect HCLT to maintain 12-14 percent revenue growth and 18-20 percent EBIT margin for FY23,” said Prabhudas Lilladher.
On the other hand, IDBI Capital Markets believes that HCL Technologies can report a 0.5 percent year-over-year net profit growth in the June quarter. However, it sees a 10.1 percent QoQ drop in HCL Technologies’ bottom line.
“We expect EBIT margin to decline about 108 basis points quarter on quarter, primarily due to wage increases and a mix change and lower utilization,” IDBI Capital Markets said, adding that the company reported revenue growth of 2 percent. .2 percent quarterly in dollars can partially report. offset by 20 basis points of cross-currency impact.
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