HCL Tech Q4 Preview: Revenue may rise, but PAT seen declining; all eyes on FY25 guidance
However, the weak discretionary spending will weigh on the overall performance, according to analysts. Consolidated revenue is expected to rise 0.5% sequentially and 7.5% year-on-year (YoY) to Rs 28,599 crore, according to the average of estimates given by 10 brokerages.
Consolidated net profit is likely to fall 6% sequentially, but rise by 2.8% YoY to Rs 4,094 crore.
The country’s third-largest software services exporter will release its fourth quarter and annual earnings on April 26, and the board will also consider an interim dividend payout.
Most analysts expect HCL Tech to meet its conservative growth guidance of FY24, and guide for a slightly higher growth in FY25.
Despite strong numbers in the December quarter, the company had trimmed its guidance for FY24.
The IT major projected constant currency revenue growth of 5.0-5.5% in FY24, compared to 5-6% guided earlier. This includes revenue recognition from the recently acquired German automotive engineering solutions provider ASAP Holding.
“We expect HCLTech to give FY25 revenue growth (4–6% CC YoY growth in Services) and margin (18–19%) guidance,” Nuvama Institutional Equities said.
Kotak Institutional Equities expects the company to guide for 5-7% revenue growth on an organic basis, excluding State Street divestiture and ASAP acquisition.
Here’s summarising the broad expectations of brokerage firms from the Noida-headquartered IT major.
Kotak Institutional Equities
We expect 0.2% sequential growth overall led by—(1) $30 million incremental in
