HCL Technologies Ltd (HCL Tech) reported strong broad based growth in Q2 FY21, revenue stood at Rs. 18,594 crs up 4.5% QoQ and 6.4% QoQ in CC terms. Operating margin expanded by 108 bps at 21.6% than previous quarter aided by strong execution, higher utilization and lower travel cost.

Federal Bank: We maintain a BUY on FB with a target price of Rs 78 (1.0x Sept-22E ABV). FB's PPOP grew strongly, led by an uptick in NIMs and core fees. However, a sharp (prudent) rise in non-tax provisions dragged net earnings. Despite the improvement in operating performance and positive commentary on collections, our earnings estimates are mostly unchanged, as we conservatively factor in higher provisions. Attractive valuation and a strong liability franchise underpin our stance. HCL Technologies: We maintain BUY on HCL Tech (HCLT), based on broad-based 2Q performance and multiple growth vectors. HCLTs prowess in cloud infra business is a strong competitive advantage with enterprises accelerating cloud adoption and higher annuity streams supported by P&P; upside. The positive outlook is also predicated on (1) strong deal wins with TCV up 35% QoQ, supported by 15 transformational wins (eight in life-science & healthcare vertical) and pipeline at an all-time high, (2) strengthening partner ecosystem with hyperscalers increasing the addressability and client access, (3) continued traction in P&P; business with cross-sell opportunities (>12,000 unique customers signings), supported by upgrades/launches (Unica/DRYiCE in 2Q). The absence of large acquisitions and subsequent accretion to FCF/payout are the upside risks to valuations. HCLT is among our top picks in the sector, and our target price of Rs 970 is based on 18x Sep-22E EPS.

HCL Tech (HCLT) reported 6.4% QoQ USD growth coming from mid-high single digit recovery across verticals.

HCL Tech announced that it is going to acquire DWS group headquartered in Australia for AU$ 158.2. The deal will likely close till December 2020. HCL Tech has strong a foothold in geographies like North America and Europe

Mid-quarter update raises revenue and margin guidance for Q2FY2021, driven by better-than-expected execution, pick-up in discretionary spends that were held up, and return of normalcy in certain pockets. Given strong capabilities in IMS, HCL Tech would continue to win consolidation deals with...

HCL Tech has announced its intent to acquire DWS Limited (DWS) for Australian $158.2 million (~| 849.2 crore) valuing the company at 0.94x EV/Sales (based on FY20 Sales) and ~21x FY20 EPS. The acquisition is subject to regulatory approvals and is expected completion timeline is by December 2020. The acquisition will add ~1% to company's top line in FY22E and will also help the company in expanding it's presence in Australia and New Zealand. The company will also be able to cross sell and up sell to existing clients of DWS. Although DWS's PAT margins (~4.4%) are lower...

To acquire Australia-based IT firm DWS Limited, expand presence in ANZ region HCL Technologies has announced its intent to acquire Australia-based IT, business and management consulting firm DWS Limited. DWS - listed on the Australian Securities Exchange (ASX) - employed 772 people as of June-end, has offices in Melbourne, Sydney, Adelaide, Brisbane and Canberra and provides a range of IT services including Digital Transformation, Application Development & Support, Program & Project Management and Consulting, mainly in Australia and New Zealand. The acquisition will be done by a process of Scheme of Arrangement to be approved by courts in Australia. It will be subject to the approvals of...

We recommend a BUY on HCL Tech with a Target Price of Rs 795, an upside of ~6% from CMP of Rs. 749 and Stop Loss Rs 700.

Over the period FY16-FY20, HCL Technologies (HCLT) delivered robust double-digit USD revenue growth of 12.4% CAGR (INR revenue CAGR of 14.6%) despite the fact that its peers were posting slower growth. And it did experience a slowdown in Q1FY21 (QoQ decline of 7.4%), the order pipeline and energetic client engagements are suggestive of growth coming back. The management enthused by these recent developments has guided for 1.5-2.5% QoQ constant currency growth for the rest of FY21 and margins are expected in the range of 19.5%-20.5%.

HCL Technologies Limited provides software development, business process outsourcing, information technology and infrastructure services. The company is spread across 49 countries with 150,000+ employees and...

Revenue at Rs.17,841crores; down 4.0% QoQ & up 8.6% YoY, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin at 25.6%, Earnings Before Interest and Taxes (EBIT) margin at 20.5% and Net Income at Rs.2,931 crores ; down 7.3% QoQ & up 31.43%YoY The Company's revenue in constant currency was down 7.2% QoQ & up 1% YoY. HCL said it expects revenue to increase QoQ by an average of 1.5% to 2.5% in constant currency for the next 3 quarters. It expects operating margin between 19.5% and 20.5% for FY21. On a sequential basis, net profit declined 7.3% and revenue fell 4% in Q1 June 2020 over Q4 March 2020. Consolidated EBITDA fell 3.3% to Rs 4566 crore in Q1 June 2020 over Q4 March 2020....

HCLT OCF generation was strong in this quarter (US$2.3bn vs US$1.3bn avg) post making the pending payment of IBM ($812mn), Net cash is US$ 1,330mn. HCLT generates ~US$1.7bn over the next 2-3 years & with limited capex &...

HDFCB: Strong enough to weather the storm. HCLT: Upbeat margin outlook

HCL Tech a reported steady set of results in Q1 FY21. Revenue for the period of Q1 FY21 stood at Rs. 17,841 cr decline by 4% QoQ much in line with the expectations. Operating margin reported a strong growth of 250bps and stood at 25.6%. Net income declined by 7.3% QoQ and stood at Rs. 2925 cr.