InvestorQ : How do you see HCL Tech after the latest results announced for the Dec-20 quarter?
Archita Jajjoo made post

How do you see HCL Tech after the latest results announced for the Dec-20 quarter?

Answer
image
Niti Shenoi answered.
5 months ago
Follow

In line with the other IT companies in India, HCL Tech also reported stellar results for Dec-20 quarter. In fact, HCL Tech saw its Q3 PAT up by 35% on a yoy basis at Rs.3,977 crore on the back of robust OPM growth and strong OPM margins. It also reported 6.44% growth in Dec-20 quarter revenues at Rs.19,302 crore as revenue flows grew across verticals.

HCL Tech crossed $10 billion sales in dollar terms during calendar year 2020. If you look at the operating profits of the company, it moved up by 20.3% to Rs.4437 crore. OMP expanded more than 250 bps at 22.99%. Even the PAT margins for the quarter were sharply up at 20.6%.

HCL Tech does provide guidance and it has guided for revenue growth of 2% to 3% for the fourth quarter ending Mar-21. Infosys and Wipro have also given similar guidance. HCL Tech saw solid traction across its key verticals like life sciences, healthcare, technology and even the traditional BFSI.

There was good traction on cloud native and digital programs as operating cash flow and free cash flows were up sharply. Attrition was just entering single digits. Overall, it looks like a rethink for the entire IT space and HCL Tech looks poised to benefit immensely from this shift. Surely it remains a major pick for anyone looking to take long view on IT.

2 Views