HCLTech's performance was not as bad as feared. In constant currency (CC) terms, revenue fell 1.2% sequentially, lower than consensus expectations of a 1.5% fall. The IT and business services segment, a key revenue generator, grew 1.6% sequentially in CC terms. But, performances of engineering and R&D business (ER&D) and software segments were subdued. In Q4, HCLTech did better than Infosys on the revenue metric, but it lagged TCS. (See chart)
HCLTech management acknowledged the delay in decision-making in discretionary spending by clients. That said, demand for cost takeout deals and vendor consolidation remains strong. For FY24, it has guided for CC year-on-year (y-o-y) revenue growth of 6-8%. Recall that Infosys has guided for a muted 4-7% y-o-y CC revenue growth for FY24.
The company's earnings before interest and taxes (Ebit) margin at 18.1% just missed consensus expectations of 18.4%, impacted by high employee costs. For FY24, it sees Ebit margin at 18-19%.
Denne historien er fra April 24, 2023-utgaven av Mint Mumbai.
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Denne historien er fra April 24, 2023-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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