HCL Tech Q2 results: Brokerages post mixed reviews; shares down nearly 2% | Check IT firm's career program in Vietnam

HCL Technolgies Ltd shares were trading lower on Monday despite reporting 1.7 per cent rise in consolidated net profit for the quarter ended September 30, 2021. The shares of the IT major were trading down 1.62% at 1230.60, a Rs 20.30 cut on the BSE intraday trade around 12.30 pm on Monday. Despite seeing spurt in volume by 1.53%, the stocks continued to trade lower in the afternoon trade. Meanwhile, after the IT giant posted its result last week, the brokerages have revised their ratings for the IT company. Here is what brokerages say post HCL Tech Q2 earnings:

CLSA on HCL Tech (CMP: 1251)
 
The brokerage has downgraded HCL Tech rating to 'outperform.' Cutting the target price to Rs 1420, the brokerage said, "It could have been a perfect quarter, with strong deal wins and a formal payout policy. However, a revenue growth miss vs expectation – elevated by +ve management weighed on the sentiment," said CLSA in its report, adding commentary going into quarter – is a 3rd successive slip and could weigh on values downgrade.  
 

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CITI on HCL Tech (CMP: 1251)
CITI too downgraded HCL tech rating from buy to neutral. It pegged the target price at RS 1340, as against Rs 1440 given by the brokerage. According to CITI, it was disappointed with product business of the IT firm. "Lower FY22E-FY24E EPS by 1-3%. Trim multiple to 24x (earlier 25x) given product weakness. Volatility in product/platform business takes the company one step back," said CITI in its report.  
 
JP Morgan on HCL Tech (CMP:1251) 
*Rating Maintain, overweight,  
*Target price cut to Rs 1400 from Rs 1430  
*2Q22 missed on both revenue & margins led by weakness in products & platforms biz even as services (IT & R R&D) reported solid growth
*Cut revenue by 2-3% & margins by 30-50 bps driving 4-5% EPS cuts over FY22-24
 
Macquarie on HCL Tech (CMP:1251)
*Rating Maintain, Outperform, target price cut to 1620 from 1672
*2Q missed consensus due to weakness in products biz
*Key +ves include strong deal wins (+38% yoy) & an increase in the pay-out
ratio to 75% (from 45-50% currently)
*Lower FY22-24E EPS by 2-6%

HCL Tech to onboard 2600 candidates in Vietnam in 5 years  

Meanwhile, HCL Tech, a leading global technology company, in a BSE filing on Monday said that it has launched its TechBee early career program in Vietnam with plans to onboard 2,600 candidates in the next five years, starting 2021.  

The TechBee program prepares students technically and professionally for global IT careers in HCL, where candidates undergo an extensive 12-month training to become successful IT professionals and work for world-class global companies, said the company.  

“Vietnam has great market potential and talent pool for global technology companies to harness,” Sanjay Gupta, Corporate Vice President, HCL Technologies, said.  

“The program will give students an early start in high-tech career roles. With this program, HCL aims to hire the best talent from the country and give them financial independence early in their lives. I strongly encourage all deserving high school graduates to enroll in this program and begin their global IT careers with HCL,” he said.