HCL Technologies Q1 Review – Growth, Margin Are Way Lower Than Pre Covid-19: ICICI Securities

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In a seasonally strong quarter, HCL Technologies Ltd. disappointed with a muted 0.7% QoQ (constant currency) growth – versus June quarter average growth of ~4% over the previous decade (excluding June 2020).

Near stagnancy (QoQ) in core IT services was more discouraging.

This was a miss even on our very low expectations of pre-Covid-19 average growth for HCL Technologies / sector – versus consensus’ expectations of growth acceleration post Covid.

Barring a few, most segments remained tepid. It is worth noting this is the second consecutive quarter of weak performance.

Ebitda margin was 170 basis points lower than street expectations.

Click on the attachment to read the full report:

ICICI Securities HCL Tech Q1FY22 Results Update.pdf


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