HCL Technologies will announce its July-September quarter results for fiscal 2023-24 (Q2FY24) on Thursday, October 12 along with its IT peer Infosys. D-Street analysts and domestic brokerages widely expect India’s third largest IT services major to report softer growth in the September quarter and reduce its revenue guidance to 4-6 per cent from 6-8 per cent.According to domestic brokerage firm JM Financials, HCL Tech is likely to see a modest improvement in growth and margin expansion during the quarter-under-review. “A likely soft 2Q and only a modest improvement in 2H should therefore induce guidance cut or moderation in outlook for most, except Infosys.
HCL Tech Q2 Results: Brokerages expect reduction in revenue guidance:
We expect HCL to reduce its organic Services/Consol. revenue growth guidance by 2 ppt to 4.5 per cent-6.5 per cent and 4 per cent-6 per cent respectively,” said the brokerage in its report. For the current fiscal, domestic brokerage Ambit expects a cut in HCL Tech’s revenue guidance to 5-7 per cent. Nirmal Bang also believes that there is a fair probability of the 6-8 per cent growth guidance being revised slightly lower Ramp-up and, hence, revenue conversion for mega deals have been in focus for a long time. Owing to the likely soft Q2 and only a modest improvement in the second half, there is an expectation of a guidance cut or moderation in the outlook for most players, except Infosys, noted JM Financial.