HCL Technologies Ltd. share price target

13 large deals of size $25mn+ closed this quarter (+13% YoY). Pipeline remains strong with possibility of accelerated booking in coming quarters. HCLT's revenue growth of 3.5% QoQ CC (Ple 3.4% & Cons: 2.7%) & 4.4% USD...

HCL Technologies (HCLT) delivered strong revenue growth (3.5% QoQ CC) in 3QFY21, above our expectation and its guidance, led by stronger than expected seasonality in the Products and Platforms vertical (P&P;, +8.3% QoQ in CC) and continued traction in Mode 2 services (+10.9% QoQ in CC). We expect HCLT to return to mid-teens growth in FY22 (14% YoY in CC USD) as continued strength in P&P; due to improving deal wins and new client additions complements improving demand environment in IT Services and R&D; verticals. The P&P; business should deliver low teen USD revenue...

HCL Tech (HCLT) reported 4.4% QoQ dollar revenue growth in Q3FY21, outperforming our 3.2% estimate.

Rising adoption of smartphones, high internet speed and social distancing (due to Covid-19) has changed consumer behaviour. Consumers now prefer to transact (buy a product) virtually over the smartphone via an app instead of physical transaction. This has led to virtualisation of business models. In addition, to keep business up and running in a work from home scenario, technology is gaining traction. As a result, new age technologies like cybersecurity (to protect business from work from home scenario), app development (to help customer transact virtually) and Cloud (to enable...

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.

HCL Technologies' (HCLT) Q2FY21 revenue growth of 4.5% QoQ in CC was slightly higher than our forecast of +3.9%. However, EBIT margin saw a strong improvement of 110bps to 21.6% (23 quarter high) and was a beat to our forecast. EPS of Rs11.6, +7.5%/+18.5% QoQ/YoY was also beat to our forecast. HCLT has maintained its revenue growth guidance at CQGR of 1.5% to 2.5% in CC for H2FY21, implying 0% to 0.7% YoY growth for FY21. However, it has now guided for EBIT margin 20%-21% for FY21 vs. 19.5%-20.5% earlier. We factor the Q2FY21 beat, FY21 guidance and increase our FY21/22 revenue (US$)...