HCL Technologies Ltd. share price target

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...

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....

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...

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...

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...

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...

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...