HCL Technologies Q1 Results Today: HCL Technologies (HCL Tech) board will consider an interim dividend payout to the equity shareholders along with its April-June FY2023 earnings on Tuesday. The interim dividend, if declared, shall be paid to the equity shareholders whose names appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares as on Wednesday, July 20, 2022, which is the record date fixed for the purpose, the company said in a communication. This will be the second Interim dividend for the financial year 2022-23.
In the past 12 months, HCL Technologies Ltd. has declared an equity dividend amounting to Rs 44.00 per share. At the current share price of Rs 943.55 (Monday Closing Price), this results in a dividend yield of 4.66 per cent.
What D-Street Expects
According to analysts, the tech gaint is expected to report a flat to single-digit year-on-year growth in profit for the June 2022 quarter despite an over 15 per cent rise in net sales. Ebit margin is seen falling at least 200 basis points on a yearly basis.
YES Securities sees HCL Technologies to log a 1.7 per cent YoY rise in net profit at Rs 3,270 crore on a 17.9 per cent rise in net sales at Rs 23,659.60 crore. It expects growth in product business to be muted, but IT services would be able to maintain growth momentum.
Emkay Global sees profit after tax at Rs 3,464.40 crore, up 7.8 per cent YoY over Rs 3,594 crore. Net sales can rise 16.5 per cent YoY to Rs 23,369.6 crore from Rs 20,068 crore, it said.
“We expect 0.9 per cent sequential dollar revenue growth after factoring in 170 basis points cross-currency headwinds. The services business would drive growth on the back of healthy deal wins. The products business should report a moderate seasonal recovery,” the brokerage added.
An assessment by Prabhudas Lilladher showed that the country’s third-largest IT player in terms of market capitalisation may report a 17.60 per cent year-on-year and 9.9 per cent quarter-on-quarter fall in Q1FY23 adjusted net profit. On the other hand, it sees 16.50 per cent YoY and 3.40 per cent QoQ growth in revenues during the quarter. The brokerage further believes that the EBITDA margin may contract by 286 basis points on a YoY basis and 76 basis points on a QoQ basis.
“We expect HCLT to maintain 12-14 per cent revenue growth guidance and 18-20 per cent EBIT margin guidance for FY23,” Prabhudas Lilladher said.
On the other hand, IDBI Capital Markets believes that HCL Technologies may report a 0.5 per cent YoY growth in net profit in the June quarter. However, it sees a 10.1 per cent QoQ drop in the bottom line of HCL Technologies.
“We expect EBIT margin to de grow by around 108 basis points QoQ mainly due to wage hike and change in mix and lower utilisation,” IDBI Capital Markets said while adding that the company may report 2.2 per cent QoQ growth in revenue in dollar terms partially offset by 20 basis points cross currency impact.