HCL Tech Q4 preview: PAT likely to fall 3% QoQ; FY25 guidance key focus area

HCL Technologies, the Noida-based IT services company, will be releasing its fourth-quarter earnings on Friday (April 26). Zee Business Research desk estimates the company's revenue to log a marginal increase of 0.7 per cent sequentially at Rs 28,650 crore. In the December quarter, the company's earnings were at Rs 28,446 crore. The company's revenue in dollar terms came in at Rs 345 crore as against Rs 341.5 crore, up 1 per cent. Similarly PAT at the company is estimated to fall by 3 per cent sequentially and come in at Rs 4220 crore versus Rs 4350 crore.

The company's IT services is seen to likely register 3 per cent sequential growth. Earnings before interest and tax (EBIT), a metric of company's profitability, is seen to register 7 percent decline during the review period to Rs 5250 crore as against Rs 5644 crore in the preceding December quarter. Also, margin at the IT major is seen to take a hit and come in at 18.3 per cent versus 19.8 per cent in the December-ended quarter, primarily on the back of Verizon deal transition expenses and P&P seasonality.

For FY25, HCL Tech may give out revenue guidance of 6-8 per cent, while margin guidance may come in the range of 18-19 per cent.

The research desk highlights that investors should keep an eye on FY25 guidance, ERD and products business outlook as well as deal TCVs and pipeline.

HCL Q3 results

In the third quarter, the company's net profit rose 6.2 per cent on year to Rs 4350 crore. Revenue at the company also rose 6.5 per cent to Rs 28400 crore.

HCL Tech share price

Ahead of its Q4 show to be released tomorrow, shares of the company ended 1.6 per cent higher at Rs 1503.65 per share on the BSE.