HCL Tech Q4 Results: All you need to know

IT major HCL Tech reported its results for the Jan - Mar ‘23 period. The company reported a yearly revenue rise of about 18% to Rs 26,606 crores while profits increased by 11% to Rs 3,983 crores for the same period.

The HCL Tech share price has been under pressure in recent times. This can be attributed to the banking crisis witnessed in its key market of the US which has impacted the IT majors like TCS and Infosys recently. Both the IT majors’ results for the Jan - Mar ‘23 period reflected this strength.

Although the HCL Tech share price has corrected marginally in 2023 so far, it is down by more than 4% in the past month and by close to 6% in the past year.

HCL Tech share price performance:
 

Decoding HCL Tech Q4 Earnings

HCL Tech Revenues:

• HCL Tech’s revenue from operations for the Jan - Mar ‘23 period came in at Rs 26,606 crores. This denotes a growth of 17.7% from the previous year.
   
• The company derived the majority of its revenues from the IT & Business Services segment which stood at Rs 19,632 crores (73.8% of total revenues), followed by Engineering Services at Rs 4,274 crores (16.1% of total revenues) and Software Services at Rs 2,700 crores (10.1% of total revenues)
• Americas and Europe continued to form the bulk of HCL Tech's revenues. While Americas contributed 63.8% of the total revenues, Europe's contribution stood at 28.9%. Meanwhile, Rest of the World made up the rest at 7.3%.

HCL Tech Profits:

HCL Tech’s profits for the Jan - Mar ‘23 period came in at Rs 3,983 crores, up 10.9% from the previous year. 

HCL Tech Attrition Rate:

HCL Tech’s attrition rate on an LTM basis stood at 19.5%.

Notably, employee count increased by 8.2% from the previous year to 2,25,944.

HCL Tech Deal Wins:

HCL Tech won deals worth $2.07 billion in the Jan - Mar ‘23 period, down 8% from the previous year. This comprised of 13 large deals with 10 in services and 3 in software.

HCL Tech Dividend:

HCL Tech declared a dividend of Rs 18 per share.

HCL Tech Share price: Analyst view

Morgan Stanley: The renowned global brokerage has an “Overweight” rating on the stock with a price target of Rs 1,160 (down from Rs 1,200 earlier). The firm cited the IT company's aggressive revenue guidance as a trigger that can drive the HCL Tech share price higher. 

JPMorgan: The top global brokerage has an “Underweight” rating on the stock with a price target of Rs 880. The firm remains worried about the company's margin expansion and revenue growth in the near term.

ICICI Securities: The leading domestic brokerage has a “Hold” rating on the stock with a price target of Rs 1,065. Absence of project cancellations and stronger revenue guidance that its peers has been cited as highlights by the firm for HCL Tech share price growth in the near term.

Nuvama: The top brokerage has a “Hold” rating on the stock with a price target of Rs 1,180. The firm cited the company's unfavorable business mix as a headwind. However, high dividend yields, the firm believes, will continue to support the HCL Tech share price. 

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.