HCL Technologies Q1FY24 Preview: Anticipated Sequential Decline in Net Profit


HCL Technologies, a leading tech company, is set to announce its financial results for the first quarter of fiscal year 2024 (Q1FY24). Analysts from reputable brokerage firms, including Philip Capital, Nirmal Bang, AMP, and HDFC Securities, have provided their estimates for key financial indicators. This article provides an overview of the expected performance of HCL Technologies in Q1FY24, highlighting net profit, dollar revenues, company revenue, and Earnings Before Interest Tax (EBIT) margins.

HCL Tech

Net Profit Projection:

According to the average estimates from Philip Capital, Nirmal Bang, AMP, and HDFC Securities, HCL Technologies is likely to report a net profit of Rs 3,782 crore in Q1FY24. This represents a 5.3 percent decline quarter-on-quarter, but an 8.1 percent increase year-on-year.

Dollar Revenues:

The April to June quarter is anticipated to see dollar revenues of approximately $3,268 million for HCL Technologies. This indicates a sequential growth of 0.8 percent and a year-on-year growth of 7.8 percent.

Company Revenue:

In terms of revenue in Indian Rupees, HCL Technologies is expected to reach around Rs 26,858 crore in Q1FY24. This translates to a quarter-on-quarter increase of 0.4 percent and a significant year-on-year increase of 13.8 percent. These figures are based on the consensus of the four brokerage firms mentioned earlier.

EBIT Margins:

The mean EBIT margins for HCL Technologies in Q1FY24 are forecasted to be at 17.7 percent. This represents a decline of 60 basis points sequentially. However, in a year-on-year comparison, EBIT margins are expected to rise by 60 basis points, as suggested by the brokerage firms.

Employee Count and Growth Expectations:

Nirmal Bang anticipates controlled hiring or even a net decline in employee count for HCL Technologies in Q1FY24. Philip Capital, on the other hand, expects a modest 1.7 percent growth in the company's IT services quarter-on-quarter. However, Engineering Research and Development services are projected to decrease by 4 percent sequentially due to the ramp-down in verticals such as Hitech and Telecom.

Key Partnership:

In April of this year, HCL Technologies secured a significant deal with the Heubach Group, a global pigment manufacturer headquartered in Austria. The deal involved the deployment of hybrid cloud, cybersecurity solutions, and end-user services.


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