18 July 2020 HCL Technologies (HCLT) reported EBITDA margin expansion (+20bp QoQ) despite the COVID-19 disruption, which is impressive. Notably, it had reported margin expansion even in 4QFY20, when most other large companies had witnessed contraction. A decent increase in net new deal wins and a robust deal pipeline (+40% QoQ) comfort us. HCLT surprised us by reinstating revenue growth (+1.52.5% CQGR, CC) and EBIT margin guidance (19.520.5%). Maintain HCLT to better navigate the current crisis and emerge stronger on the back of an expected increase in enterprise demand for Digital Services. HCLT reported revenue (CC) / EBIT / PAT growth of 1%/30%/32% YoY v/s our estimate of 1%/17%/19% YoY. Revenue decline was in-line with estimates. As expected, Engineering Services (-9% QoQ, CC) was the biggest overhang on revenue this quarter. While the IT & Business Services segment declined ~8% QoQ (CC), the Products & Platforms business remained resilient (-2% QoQ, CC).