Latest news with #HCL
Scotsman
17-07-2025
- General
- Scotsman
HcL new Community Bus service gets the thumbs up from passengers
Public Transport Manager for the City of Edinburgh Council Stuart Lowrie, Margaret Bennett the engagement officer for Northfield and Willowbrae Community Council and some of the services new passengers joined HcL manager Robert Hutson to discuss the new 69 community bus service. This bus service covers Lady Nairne circular Monday to Saturday. HcL have been delivering this service since December 2024 and in that short time we have supported 1000's of passengers get out and about with 97% of these free trips taken through concessionary travel passes. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Margaret Bennett Northfield and Willowbrae Community Council stated: 'The return of the 69 Bus Service, courtesy of HCL, has been warmly welcomed by the elderly and disabled residents of Lady Nairne and Willowbrae. Living on the side of a steep hill and a long way from a bus stop led to hardship, isolation and loneliness during the Covid lockdowns, after the service was withdrawn. Today, however, the one hour round trip to Asda passes all three local GP surgeries, the Library, Community Centre, several supermarkets and Portobello High Street and saves long treks uphill carrying heavy shopping bags. Travellers are guaranteed a friendly welcome on board by drivers Ros and Bob, as well as a 'blether' with fellow passengers, many of whom are on first name terms already! Advertisement Hide Ad Advertisement Hide Ad The bus can be hailed anywhere along the route between Paisley Drive and Meadowfield Avenue and also at regular bus stops elsewhere and takes passengers of all ages. If you haven't used it yet, why not look out for HCL's smart black midi-coach and spend an hour familiarising yourself with the route?' Robert Hutson HcL Manager, Stuart Lowrie Public Transport Manager CEC, Margaret Bennett Northfield and Willowbrae CC, Janet Pollock, Cathy Lynch and Iris Bell. This service links the public and most importantly people with mobility challenges from residential areas with key services on main streets including shops and healthcare services. It also supports users to connect to existing public transport services in these areas for forward travel. The service operates on a unique hail and ride basis in residential areas where there are no formal bus stops. Passengers can signal to the driver to stop at any point in these areas and the driver will stop as soon as it is safe to do so. The vehicle used on service 69 is fully accessible and is specially adapted to carry combinations of wheelchair users and other passengers safely and comfortably. Advertisement Hide Ad Advertisement Hide Ad Fares are £2 for adults, and £1 for children, with concessionary bus pass holders able to travel for free. Passengers give the new bus service a big thumbs up HcL Manager Robert Hutson stated: 'We are delighted to be able support more people within the area get out and about, we have had lots of great feedback about the service and listened to how we can make it even better today, we really want to make sure as many people as possible know about the service. A special thank you to Northfield and Willowbrae community council for sharing the news of the service through leaflet drops and an amazing amount of community engagement and to Stuart Lowrie for supporting the service to get up and running' Thank you to everyone that attended today- the feedback provided allows us to make this service even better for the passengers. If you want to know more about the service please visit our website Community Buses - Service 69 :: HCL Transport or call 0131 447 9949, by emailing: [email protected]
Mint
15-07-2025
- Business
- Mint
Shrinking margin leaves HCLTech stock with no room for error
HCL Technologies Ltd's sequential margin contraction in the June quarter (Q1FY26) comes as a rude shock, even though the first quarter of a financial year is typically weak for the company owing to seasonality in its software before interest and tax (Ebit) marginfell 170 basis points (bps)to 16.3%, missingthe consensus estimate of 17.3%. What gives? Higher sales and marketing investments, lower utilisation, client bankruptcy shrunk Q1 margin. The upshot is that HCL trimmed its FY26 Ebit margin guidance band by 100 bps from 18- 19% to 17-18%. This unexpected outcome meant investors dragged the stock down about 3% on Tuesday. 'One potential conclusion that the Street may draw is that HCL is trading off margins for revenue growth. This perception is reinforced by the downward revision of its Ebit margin guidance band—from 19-20% in FY22 to 17-18% for FY26, marking the second cut in four years," said a Kotak Institutional Equities report dated 14 July.A part of the margin decline is due to industry-wide pressure and may not return unless demand returns to normalcy or the Indian rupee depreciates significantly, Kotak cautioned. HCL'srevised margin guidance accounts for Q1's lower utilisation levels to possibly continue in Q2. It also accounts for investments in sales and marketing and AI capabilities to boost growth, as well as the impact from the restructuring programme HCL plans to undertake this year. The company expects margin to normalise in FY27. Earnings downgrades Still, all this has not stopped earnings downgrades.'The weak margin in Q1FY26 and the guidance cut leave HCL with almost zero earnings per share (EPS) growth in FY26," said a Nuvama Research report on 14 July. It has cut its FY26 and FY26 earnings per share estimated by 5.7% and 3.1%, respectively. HCL's Q1FY26 constant currency (CC) revenue was down 0.8% sequentially. Here, it outpacedlarger peer Tata Consultancy Services (TCS), which saw CC revenue fall 3.3% sequentially. The total contract value (TCV) of HCL's new deals declined to an eight-quarter low of $1.8 billion in Q1FY26 from $3 billion in Q4FY25. Delayed signing of deals and a large vendor consolidation deal slipping into from Q1 to Q2 led to this TCS, the HCL management is confident of a stable demand environment and expects pick-up in deal TCV in Q2FY26. In effect,HCL raised the lower band of its FY26 CC revenue growth guidance from 2%-5% to 3%-5%. 'In our view, the implied revenue CQGR (compound quarterly growth rate) is in the range of 1.4-2.7% for the lower and upper ends of revenue growth guidance for FY26E, which is not challenging, considering deals ramp up from Q2 as well as Q3 seasonality," said an Elara Securities (India) report dated 15 July. Financial services and technology verticals showed resilience, but softness persisted in manufacturing (particularly auto), life sciences, retail, and consumer packaged the deal pipeline is robust and clients continue to prioritise AI-led efficiency and transformation projects, management said. HCL stock has recovered 13% from its 52-week low of Rs1,302.75 on 7 April. TCS's shares have been flat and those of Infosys Ltd are up 14% over this period. HCL stock trades at 22 times estimated FY27 earnings, showed Bloomberg data. The valuation multiple is largely in line with those of TCS and Infosys. While HCL has the potential to beat its peers on organic revenue growth in FY26, after the margin blip, the stock's valuation leaves no room for disappointment.
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Business Standard
15-07-2025
- Business
- Business Standard
HCL Tech shares slide 4% as analysts trim estimates post Q1 miss
Shares of HCL Technologies tumbled over 4 per cent on Tuesday after the technology major reported a sequential decline in net profit in the first quarter and cut its margin guidance for the full fiscal year. The IT giant's stock fell as much as 4.31 per cent during the day to ₹1,550 per share, the biggest intraday fall since April 7 this year. The stock pared gains to trade 3 per cent lower at ₹1,569.7 apiece, compared to a 0.55 per cent advance in Nifty 50 as of 11:45 AM. HCL Tech Q1FY26 results The IT services firm reported a net profit of ₹3,843 crore for the first quarter of the financial year 2026 (Q1-FY26), down 9.72 per cent year-on-year (Y-o-Y). On a sequential basis, profit was down 10.7 per cent. The company reported 3.7 per cent constant-currency (CC) revenue growth for the April-June quarter. Revenue from financial services was up 6.8 per cent, technology 13.7 per cent, and telecommunications 13 per cent. The manufacturing and life sciences verticals were down 1 per cent and 4 per cent, respectively. HCL Tech FY26 guidance HCL expects revenue to grow 3-5 per cent on a CC basis for the full year, up from 2-5 per cent it had projected in April. However, the firm cut its Ebit (earnings before interest and tax) margin guidance to 17-18 per cent from 18-19 per cent earlier. The company said the margins would be impacted due to restructuring. HCL Tech management commentary 'The macro environment remained stable from an overall perspective, with some variations across verticals, but the overall situation did not deteriorate as feared at the start of the quarter,' said C Vijayakumar, chief executive officer (CEO) and managing director, at a news conference. 'We won a large consolidation deal in financial services this quarter, which is not accounted for in the total contract value (TCV) for the first quarter,' Vijayakumar added. The value of the new deal bookings stood at $1.81 billion. Analysts on HCL results Nuvama Institutional Equities said that weak margins in Q1-FY26 and a guidance cut have left HCLTech with almost no earnings per share (EPS) growth expected for FY26. "While we continue to favour its strong revenue growth, making it the fastest-growing among the top five IT firms, earnings have been impacted by lower margin expectations." Nuvama downgraded the stock to 'hold' and said that it now trades at a slight premium to TCS and Infosys, limiting further upside. Emkay Global noted that HCLTech's Q1FY26 operating performance was weaker than expected, primarily due to a margin miss, although revenue was in line. The brokerage lowered its FY26-28 earnings per share (EPS) estimates by 3-7 per cent, factoring in the Q1 results and the margin guidance cut. It retained 'Reduce' rating and revised the target price by around 5 per cent to ₹1,660. Nomura cut its FY26-27 EPS estimates by around 2-5 per cent and slashed the target price to ₹1,810 (from ₹1,840 earlier). "We expect the street to look past the near-term margin miss, as margins are likely to recover in FY27, and instead focus on HCLTech's continued revenue outperformance."
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Business Standard
15-07-2025
- Business
- Business Standard
HCL Tech shares slide 3% as analysts trim estimates post Q1 miss
Shares of HCL Technologies tumbled over 3 per cent on Tuesday after the technology major reported a sequential decline in net profit in the first quarter and cut its margin guidance for the full fiscal year. The IT giant's stock fell as much as 3.06 per cent during the day to ₹1,570.1 per share, the biggest intraday fall since May 13 this year. The stock pared gains to trade 2.7 per cent lower at ₹1,575 apiece, compared to a 0.18 per cent advance in Nifty 50 as of 9:35 AM. HCL Tech Q1FY26 results The IT services firm reported a net profit of ₹3,843 crore for the first quarter of the financial year 2026 (Q1-FY26), down 9.72 per cent year-on-year (Y-o-Y). On a sequential basis, profit was down 10.7 per cent. HCL Tech FY26 guidance HCL expects revenue to grow 3-5 per cent on a CC basis for the full year, up from 2-5 per cent it had projected in April. However, the firm cut its Ebit (earnings before interest and tax) margin guidance to 17-18 per cent from 18-19 per cent earlier. The company said the margins would be impacted due to restructuring. HCL Tech management commentary 'The macro environment remained stable from an overall perspective, with some variations across verticals, but the overall situation did not deteriorate as feared at the start of the quarter,' said C Vijayakumar, chief executive officer (CEO) and managing director, at a news conference. 'We won a large consolidation deal in financial services this quarter, which is not accounted for in the total contract value (TCV) for the first quarter,' Vijayakumar added. The value of the new deal bookings stood at $1.81 billion. Analysts on HCL results Nuvama Institutional Equities said that weak margins in Q1-FY26 and a guidance cut have left HCLTech with almost no earnings per share (EPS) growth expected for FY26. "While we continue to favour its strong revenue growth, making it the fastest-growing among the top five IT firms, earnings have been impacted by lower margin expectations." Nuvama downgraded the stock to 'hold' and said that it now trades at a slight premium to TCS and Infosys, limiting further upside. Emkay Global noted that HCLTech's Q1FY26 operating performance was weaker than expected, primarily due to a margin miss, although revenue was in line. The brokerage lowered its FY26-28 earnings per share (EPS) estimates by 3-7 per cent, factoring in the Q1 results and the margin guidance cut. It retained 'Reduce' rating and revised the target price by around 5 per cent to ₹1,660. Nomura cut its FY26-27 EPS estimates by around 2-5 per cent and slashed the target price to ₹1,810 (from ₹1,840 earlier). "We expect the street to look past the near-term margin miss, as margins are likely to recover in FY27, and instead focus on HCLTech's continued revenue outperformance." HCL Tech share price history Shares of the company fell for the seventh straight day on Tuesday and currently trade at 25 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 17 per cent this year, compared to a 6.3 per cent advance in the benchmark Nifty 50. HCL Technologies has a total market capitalisation of ₹4.28 trillion.
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Business Standard
14-07-2025
- Business
- Business Standard
HCLTech Q1 results: Net profit slips 10% to ₹3,843 cr, revenue up 8.2%
HCLTech, India's third-largest information-technology (IT) services firm, on Monday reported net profit for the first quarter of 2025-26 at ₹3,843 crore, down 9.72 per cent year-on-year. On a sequential basis profit was down 10.7 per cent. It reported 3.7 per cent constant-currency revenue growth for the April-June quarter, helped by its technology and services, telecommunications and media, and financial services. These more than offset the sluggishness in manufacturing and the life-sciences vertical. For the quarter ended June 30, HCL reported revenue of ₹30,349 crore, up 8.2 per cent over that in the same period a year earlier. The value of the new deal bookings stood at $1.81 billion. That also helped India's third-largest IT services exporter to raise the lower end of its guidance. HCL now expects to grow 3-5 per cent on a constant-currency basis for the full year, up from 2-5 per cent it had projected in April. However, the firm cut its EBIT (earnings before interest and tax) margin guidance to 17-18 per cent from 18-19 per cent earlier. The company said the margins would be impacted due to restructuring. 'The macro environment remained stable from an overall perspective, with some variations across verticals, but the overall situation did not deteriorate as feared at the start of the quarter,' said C Vijayakumar, chief executive officer (CEO) and managing director, at a news conference. 'We won a large consolidation deal in financial services this quarter, which is not accounted for in the total contract value (TCV) for the first quarter,' Vijayakumar added. 'We have some large deals in the pipeline which were expected to close in Q1 but have moved to the second quarter. This delay is unrelated to the external or macro factors. We are optimistic about this conversion, and if all goes according to plan, the TCV numbers should see a stepup in the coming quarters.' Financial services were up 6.8 per cent, technology 13.7 per cent, and telecommunications 13 per cent. The manufacturing and life sciences verticals were down 1 per cent and 4 per cent, respectively, because uncertainties persisted in those sectors owing to concerns over trade tariffs. While growth in the United States, the biggest market that contributes about 60 per cent to the top line, remained muted, Europe was up 9.6 per cent while business from other geographies, excluding India, was up 15 per cent. 'Steady bookings, artificial intelligence/GenAI adoption, a robust pipeline and management commentary on non-deterioration of demand environment position it well for FY26. While near-term uncertainties may impact discretionary spending, HCLTech's diversified portfolio and AI-driven solutions ensure long-term growth potential,' wrote Shaji Nair, research analyst, Mirae Asset Sharekhan. Operating margins, however, dropped to 16.3 per cent from 17.1 per cent year-on-year. 'The margins were lower than what we had planned. While Q1 has been historically low for us, the margins were below expectations as utilisation dropped due to a delay in rampup of a specific programme. We also encountered rampdowns in specific areas. Also there was a demand supply mismatch between skills and locations and a client bankruptcy,' the CEO said. The company took on board 1,984 fresh engineering graduates in the last three months. HCL will also add people with specialised skills in AI, cybersecurity, and digital engineering. They will account for 15-20 per cent of fresh hiring. 'We will also be undertaking some restructuring in facilities which we are not utilising outside India which are related to acquisitions. Also there will be some talent ramp downs in some geographies outside India and expect during the second and third quarter and a small part in the last,' Vijayakumar added. Meanwhile, the first-quarter performance of India's largest IT services provider, Tata Consultancy Services (TCS), continued to reflect the impact of macroeconomic uncertainty and slow discretionary spending. The firm's management remained optimistic overall, but admitted that high single-digit growth looks tough. TCS reported a net profit of ₹12,760 crore for the first quarter of FY26, up 6 per cent compared to ₹12,040 crore in the same period of FY25. Revenue grew 1.3 per cent year-on-year (Y-o-Y) in reported terms to ₹63,437 crore in Q1FY26. Sequentially, the company's revenue was down by 1.6 per cent, the slowest quarterly growth since Q1FY21, when revenue fell 4 per cent quarter-on-quarter due to the Covid-19 pandemic. Prior to that, TCS had reported a sequential revenue decline of 0.2 per cent in Q1FY18.
