HCL Tech reported its Q4 FY19 numbers. The numbers are much in line with expectations. The company has reported revenue growth of growth of 3.3% QoQ in constant currency terms and 15.3% on YoY basis at Rs. 15,990 crs. However Net income is down by 1.6% QoQ at Rs. 2,568 crs.

Revenue at Rs. 60,427 crores; up 19.5% YoY Net Income at Rs. 10,123 crores; up 15.3% YoY In FY'19, HCLT delivered industry leading revenue growth at 11.8% YoY in constant currency...

HCLT reported strong revenue growth of 3.3% QoQ CC led by IMS(7.3% QoQ Change in Estimates | Target | Reco reflects signs of growth in digital services business. HCLT EBIT margin came...

A strong revenue beat but below-estimated margins rounded off an in-line operating performance from HCL Tech (HCLT) for the Mar'19 quarter. Management's FY20 revenue outlook bakes in better organic growth and robust inorganic revenues, but lower profitability. The company saw record deal wins (17 transformational wins) in Q4 and its deal pipeline remains strong (+10% YoY). We tweak our FY20/FY21 EPS estimates by 1.7%/+0.4% and retain ADD with...

Despite healthy deal pipeline, organic growth not catching up The company expects growth in the near term to be driven by digital business while macroeconomic issues may impact legacy business. Hence, the company expects its Mode 1 (its traditional business) business to grow in low single digit and Mode 2/Mode 3 (new age businesses) to grow from the current 28.4% to 35.0% of overall revenues by FY21E. Further, the company's qualified pipeline is 10% higher than FY19 pipeline. This has led the company to give guidance of 14-16% of which 7-9% will be through...

Gujarat State Petronet (GUJS) reported Q4FY19 earnings of Rs 1.5bn (2.6% YoY), significantly below our estimate due to higher costs (EBITDA margins at ~75% vs. 82% estimated). Volumes too underperformed at 32.4mmscmd (5% YoY). We cut FY20/FY21 earnings estimates by 13%/ 16%, assuming lower margins and volumes. Our Mar'20 DCF-based TP stands revised to Rs 185 (from Rs 210), and we downgrade the stock to ADD (from BUY) as near-term concerns on margins and volumes weigh heavy....

Modest Organic Acceleration In FY20; IP Monetisation Key For A Re-rating ACCUMULATE HCL Technologies' (HCLT) 4QFY19 revenue growth at 3.3% in constant currency (CC) terms was 70bps below our estimate but likely ahead of street estimate. However, its 4QFY19 EBIT margin of 18.9% was 140bps below our estimate. For FY19, HCLT has delivered above the upper end of its revenue guidance (both for total as well as organic growth) and EBIT margin at the lower end. HCLT has given FY20 revenue growth guidance at 14%-16% in CC terms terms with organic growth at 7%-9% and inorganic growth at 7%. EBIT margin band has been lowered by 100bps to 18.5%-19.5% driven by: (1) Investments ahead of acquisition of the IBM IP likely takeover of sales...

View: Lower margin guidance for FY20, key disappointment HCLT reports strong revenue & PAT in Q4FY19; however, margins missed estimates. The management guided for revenue growth at 14%-16% in CC terms for FY20 which translates to 13.4%-15.4% in USD terms. HCLT reported revenue growth of 11.8% (CC terms) in FY19 which exceeded its upper end guidance. We estimate a USD revenue growth of 13.7%/10.3% in FY20E/FY21E, driven by healthy growth in digital services. Healthy USD revenue growth offsets the negative impact on account of change in our...

ever deal bookings (third time record order bookings during FY2019) in Q4FY2019, while operating profitability missed our estimates. HCL Tech impressed with strong constant currency (CC) revenue growth of 3.3% q-o-q and 15.3% y-o-y, led by strong growth in IMS (7.3% q-o-q and 21.9% y-o-y CC) and application services (5.2% q-o-q and 8.4% y-o-y CC). On...

Good Quarter; FY20 Guidance Implies Healthy Revenue, but at a Cost HCL Technologies (HCLT) reported revenue growth of 3.3% in CC terms in 4QFY19, while USD revenue rose 3.5% QoQ to US$2.28bn led by a robust 7.3% QoQ CC growth in IMS revenue. Impressive growth in IMS is the biggest positive, with YoY growth hitting double-digit for the second successive quarter (21.9%). On the flip side, ER&D; services and Business Services declined by 3% QoQ and 5.8% QoQ, respectively. Management had alluded to growth momentum continuing in 2HFY19E two quarters ago, and the company has delivered in 3QFY19 and 4QFY19, aided by robust traction in Infrastructure-as-a-Service (IaaS) with enterprises investing substantially in...

HCL Tech reported strong Q3FY19 results in terms of revenue and deal pipeline; HCL tech reported revenue growth of 5.6% QoQ and 13% on YoY on constant currency basis.

HCL Technologies Ltd.'s earnings met estimates in the quarter ended December despite facing cross-currency headwinds Sequentially HCL Technologies registered 5.6% rise in consolidated sales to Rs 15699 crore for...

HCL Tech on sales front posted 4.9% sequential growth in USD revenues to US$2,202mn v/s. US$2,099mn in 2QFY2019. In Constant currency terms (CC), the company posted a 5.6% qoq growth. EBIT margin came in at 19.7% v/s 20.0% in 2QFY2019. Consequently, PAT came in at `2,611cr v/s. `2,540cr in 2QFY2019, a rise of 2.8% qoq.

Expect rev/EPS CAGR of 13/10% over FY19-21E factoring USD rev growth at 16.2/10.1% and EBIT% at 20.3/19.7% for FY20/21E, respectively. Valuations attractive at 11.7x FY20E, maintain BUY with TP of Rs 1,260, 14x-Dec-20E EPS. HCL Tech (HCLT) posted robust revenue performance (10-qtr high QoQ) driven by strong uptick in IMS. Revenue came at USD 2,201mn, +5.6/13.0% QoQ/YoY CC, led by IMS (37.5% of rev) posting +10.4% QoQ CC on ramp-up of large deals. Revenue guidance was increased to top-end of 9.5 to 11.5% YoY band (at mid-point earlier) led by traction in organic business. EBIT% stood at 19.7%, -30bps QoQ on wage increase impact. APAT stood at Rs 26.11bn, 2.8/19.0% QoQ/YoY impacted by lower other income (forex loss of Rs 0.54bn), offset by lower ETR.

FY19 guidance revenue growth of 9.5% to 11.5% in CC (7.9% to 9.9% in US$) and EBIT margin of 19.5%-20.5% has been maintained, in-line with our expectation. HCLT now expects FY19 revenue growth at the top-end of the guidance vs. mid-point earlier. We fine-tune our FY19/20E revenue and EPS forecast. We now forecast FY18-20 revenue (US$)/EPS CAGR of 9.9%/11.6%. We maintain ACCUMULATE with new TP of Rs1,099 (vs. Rs1,073 earlier) based on PER of 14x FY20E. Clarity on the ammortisation policy for the acquisition of IBM software products for US$1.8bn remains an important monitorable for us....

ICICI Securities Ltd | Retail Equity Research HCL Tech reported a strong Q3FY19 on the revenue front with constant currency growth of 5.6% QoQ (vs. our estimate of 2.7%)....

HCL Tech (HCLT) reported stellar 10.4% QoQ CC growth in the IMS business, aiding a 4.9% rise in Q3FY19 US$ revenues vs. 2.5% estimated. EBIT margins at 19.7% were a bit softer than estimates. HCLT is trending ahead on organic growth versus its guidance at the start of the fiscal. Robust 9MFY19 new deal bookings (+40% YoY), receding concerns in select European BFSI accounts and likely lower headwinds on IMS contracts support growth visibility....

While at the beginning of FY19 HCL Technologies (HCLT) gave guidance of midpoint of its 9.5%11.5% revenue growth in constant currency (CC) terms with equal contribution from both organic and inorganic means, post 3QFY19 not only is it indicating the upper end of this range but also a higher skew to the organic growth part. HCLT reiterated its target EBIT margin band of 19.5%20.5%. Based on HCLT commentary, a positive surprise on both 2.4% CC 4QFY19 revenue growth factored into its guidance and organic growth is likely. With the commentary around new deal wins (two of the strongest quarters in history in FY19') and YTD bookings (entirely new) up 40% YoY, HCLT seems poised to exit FY19 in a strong fashion. Also, the pain from IMS and the two large European BFSI customers seems to be behind. The commentary around growth seems most positive in HCLT's case among the four tier-1 companies that have declared results for 3QFY19....

of 5.6% ahead of our estimate of 4.5%. Organic QoQ CC growth was 4.3%, higher than our estimate of 3.5%, led by ramp-up in large deals and IP 29 January 2019 segments 3Q seasonality (albeit less pronounced). Despite significant growth, EBIT margin shrank 30bp QoQ to 19.6% (marginally below our estimate of 20%) due to planned wage increases, which had an impact of 50bp, partially offset by 15bp tailwind from currency. PAT of INR26.1b came in 10% ahead of our estimate due to a lower tax rate (17.7% v/s our estimate of 21%), lower forex loss (INR540m v/s our estimate of INR2.6b) and higher other income. For YTD FY19, CC revenue/EBIT/PAT is up by 10.7%/18.6%/15.