HCL Technologies, a leading technology company, is set to announce its first-quarter results on Wednesday. Let’s take a look at the key details:
Net Profit Forecast
Analysts, according to a poll by FactSet, expect HCL to report a 17% increase in net profit to 38.32 billion rupees ($464.0 million) for the quarter ending June 30. This compares to INR32.83 billion in the same period last year.
The FactSet poll also estimates that HCL’s first-quarter revenue will show a 14% growth from the previous year, reaching INR268.36 billion.
What to Watch
Investors will be paying close attention to HCL’s margins, especially given the global challenges of high inflation. In the previous fiscal year’s fourth quarter, HCL’s earnings-before-interest-and-taxes margin stood at 18.1% compared to 17.9% a year earlier. Any improvement in margins would be significant.
In April, HCL projected a growth rate of 6.0%-8.0% in constant-currency terms for the fiscal year, with an expected EBIT margin of 18%-19%. Investors are eagerly awaiting any updates or changes to this annual guidance.
Apart from reviewing the first-quarter results, the board will also discuss a possible dividend payment. Last year in July, HCL announced an interim dividend of INR10 per share. Investors will be keen to hear any news regarding dividends.
For more information, please contact Kosaku Narioka.