INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of HCL Technologies were marginally lower on Tuesday ahead of its December quarter results scheduled for later in the day
The IT major is likely to report 2.5-4 per cent YoY rise in constant currency (CC) revenue and expansion in margins to the tune of 30-70
basis points sequentially
The management is expected to maintain revenue growth guidance of 9.5-11.5 per cent for FY19.
At 10.35 am, the scrip was trading 0.66 per
Brokerage Edelweiss Securities expects HCL Tech to log 2.6 per cent CC revenue growth due to seasonal strength in its product
Margin is expected to expand 70 bps QoQ on account of benefit of rupee depreciation, strong growth in product business and other operational
Growth rates in product business, commentary on ERD business, traction in IMS and update on products acquisition from IBM are key
large deal wins and favorable seasonality in mode and services including IP partnerships
We do not expect any change to FY19E growth guidance of 9.5-11.5 per cent either
Tech to report Ebitda margins of 23.8 per cent for the quarter, up 30 bps QoQ
Third quarter is seasonally strong for the IBM IP business, which could aid overall margins for HCL Technologies, it said
