HCL Technologies Ltd. share price target

Organic revenue growth to be muted at ~5% in FY19E HCL Tech reported 1.2% growth in CC terms on the topline front. Growth was wide-ranging across revenue segments, mainly led by infrastructure services, engineering, R&D; services and financial services. On FY19E outlook, HCL Tech guided for revenue growth of 9.5-11.5% in constant currency (vs. 10.5-12.5% for FY18E) translating to 10.5-12.5% in US$ terms based on March 31, 2018 rates. Taking into account the incremental contribution from acquisitions, IP partnerships and new deals in the...

BUY with TP of Rs 1,130 (15x FY20E). HCL Tech (HCLT) posted in-line revenue and operating performance. Revenue stood at USD 2,038mn, 1.2/8.2% QoQ/YoY (CC terms) and FY18 growth at 10.5% YoY. For FY19, HCLT guided rev growth at 9.5 to 11.5% YoY CC (4.25 to 6.25% YoY organic including -1% impact from decline in India SI business). EBIT margin was flat sequentially at 19.6% (19.8% in FY18) and maintained its EBIT% band of 19.5 to 20.5%.

From a vertical perspective, it was Financial Services (+4.2% QoQ) that was the key growth driver in 4QFY18, while Public Services (+5.6%) also saw healthy growth after 3 successive quarters of decline. On the other hand, Manufacturing (+1.1% QoQ) and Life Sciences (+0.8%)...

HCLT's 4QFY18 revenue grew 8.2% YoY CC (est. of +9.1%), EBITDA rose 14.6% YoY (in-line), and PAT increased 10% YoY to INR22.3b (est. of INR23.5b). The company delivered QoQ CC revenue growth of 1.2% versus our estimate of +2%. EBIT margin for the quarter was flat QoQ at 19.6%, in line with our estimate of 19.8%. Full-year FY18 revenue grew 10.5% YoY CC, EBITDA rose 11% YoY and PAT grew 3.8% YoY.

Valuation: At CMP of Rs. 993, HCLT Ltd is trading at a P/E multiple of 15.4(x) compared to the industry peer of 19.7(x). The company has an upside potential of 25% to 30% in the next 12 to 18 months. We arrive at a target price in range of...

IT firm HCL Technologies reported profit for October-December quarter increased 1 percent sequentially to Rs 2,075 crore and maintained full year constant currency revenue guidance. Revenue during the quarter increased 3 percent quarter-on-quarter to Rs 12,809 crore and...

HCL Tech's Q3 beat expectations, with revenue growth of 3.1% QoQ (3.3% in cc terms) at USD 1,988 mn (our/consensus estimate: USD 1,980 mn/1,972 mn) and EBITDA margin expansion of 95 bps at 23.1% (our/consensus estimate: 22.3%/22.1%).

HCL Tech, for 3QFY2018 the sales came in at US$1,988mn (v/s US$1,977mn expected and) v/s US$1,929mn in 2QFY2018, registering a qoq growth of 3.1%. In constant Currency (CC) terms, the company posted a qoq growth of 3.3%. On EBIT front, the company posted an EBIT of 19.6% (v/s 19.7% expected and) v/s 19.7% in 2QFY2018. Consequently, the PA..

management expects recovery in IMS business in H1FY19 after recent deepak.purswani@icicisecurities.com large deal wins in segment. We have slightly fine tuned our EPS estimates...

HCL Technologies Ltd Q3FY18 results comment Revenue grew by 3.02% to Rs. 12809.0 Cr in Q3FY18 when compared to the previous quarter