InvestorQ : How do you see the latest results of HCL Tech and how will it impact price of the stock?
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How do you see the latest results of HCL Tech and how will it impact price of the stock?

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3 months ago
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HCL Technologies reported average numbers and it was more of a disappointment coming just after the Infosys results. In dollar terms the revenues of HCL Tech were lower by 7.4% sequentially for the June quarter. However, margins were better-than-expected and dropped by just about 40 bps on the back of better cost management and off-shoring.

HCL dollar operating profit fell only 6.1%, substantial better than the 14.6% drop for TCS. HCL also gave a good guidance about future outlook by guiding revenues to grow 1.5-2.5% sequentially in each of the next 3 quarters. The good news was that the HCL order pipeline was 40% higher compared to Mar-20 quarter. It has guided OPM at 19.5-20.5%.

Another significant announcement that Shiv Nadar, the man who built HCL Tech from scratch would step down as the head. He will be replaced by his daughter, Roshni Nadar, who will not assume full charge. While markets may be sceptical about the change in guard, Roshni is an old hand and has been involved in the ropes of business for quite some time.
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