Latest news with #HCLTechnologiesLtd
Business Standard
13-05-2025
- Business
- Business Standard
Quick Wrap: Nifty IT Index registers a drop of 2.42%, NIFTY Crashes 1.39%
Nifty IT index closed down 2.42% at 37354.6 today. The index has added 14.00% over last one month. Among the constituents, Infosys Ltd fell 3.58%, HCL Technologies Ltd slipped 3.04% and Tata Consultancy Services Ltd dropped 2.91%. The Nifty IT index has increased 13.00% over last one year compared to the 11.19% spike in benchmark Nifty 50 index. In other indices, Nifty Media index increased 1.66% and Nifty Services Sector index is down 1.60% on the day. In broad markets, the Nifty 50 is down 1.39% to close at 24578.35 while the SENSEX has declined 1.55% to close at 81148.22 today.
Business Standard
23-04-2025
- Business
- Business Standard
Quick Wrap: Nifty IT Index gains 4.34%
Nifty IT index closed up 4.34% at 35414.65 today. The index has slipped 5.00% over last one month. Among the constituents, HCL Technologies Ltd added 7.71%, Coforge Ltd jumped 6.27% and Oracle Financial Services Software Ltd rose 5.31%. The Nifty IT index has soared 5.00% over last one year compared to the 8.77% increase in benchmark Nifty 50 index. In other indices, Nifty Auto index gained 2.38% and Nifty Pharma index gained 1.40% on the day. In broad markets, the Nifty 50 recorded a gain of 0.67% to close at 24328.95 while the SENSEX recorded a gain of 0.65% to close at 80116.49 today. Powered by Capital Market - Live News
Mint
23-04-2025
- Business
- Mint
HCL Q4: Positives in play, but the downgrades keep coming
HCL Technologies Ltd's investors are upbeat, especially in a world where global macroeconomic gloom has lately kept IT stocks on tenterhooks. HCL's shares surged almost 8% on Wednesday following its March quarter (Q4FY25) results. Sequentially, the company's revenue dropped 0.8% in constant currency (CC) terms last quarter, compared to the consensus estimate of a 0.5% revenue drop, hurt by the usual seasonality in its software business. However, the Street seems to have derived optimism from HCL's FY26 guidance and robust deal wins. The company foresees year-on-year revenue growth of 2-5% in CC terms, for both consolidated and services business. While the guidance is modest, it is better than rivals Infosys Ltd and Wipro Ltd . 'HCL's FY26 revenue growth guidance was slightly better than expectations, as well as Infosys (0%–3%), with reasonable required compound quarterly growth rate (0.3%–1.5%)," said Nuvama Research. Read this | Big Four of Indian IT lose market share; HCL Tech's outlook offers little relief The guidance includes around 100 basis points of inorganic contribution. The lower end of the range assumes deterioration in macros, weighing on large deal closures in Q1FY26. The top-end assumes a stable macro environment, where strong Q4FY25 bookings continue to ramp up, and large deals close successfully in Q1FY26. HCL acknowledges that the demand environment remains challenging. Macroeconomic headwinds, including tariff hikes and de-globalization, are seen impacting decision-making cycles. Therefore, the management remains cautious on retail, auto (tariff-sensitive sectors), and discretionary segments. However, energy, BFSI, and digital infrastructure are better positioned. Usual seasonality is expected in Q1FY26, but sequential revenue growth in the quarter would not be as weak as Q1FY25, it added. HCL secured new deals worth a total contract value of approximately $3 billion in Q4FY25, bolstered by a mega deal, up from $2.1 billion in Q3FY25. This brings the total for FY25 to $9.4 billion. The deal pipeline remains robust, with near-record levels, and artificial intelligence (AI) and generative AI are integral components of most deals in the pipeline, it said. Both the Americas and the EU have seen considerable growth in the deal pipeline. Overall, earnings before interest and tax (Ebit) margin declined sequentially to 18%, impacted by the second cycle of wage increments, product seasonality and higher expenses, partly offset by operating efficiencies and forex movements. The company maintained its Ebit margin guidance for FY26 at 18-19%. Read this | What feeble order books foretell for India's tech bluechips PL Capital anticipates further contribution from HCL's high-margin products and platforms (P&P) business to FY26 margins, as the broking firm expects the segment to recover this year through expanding opportunities in emerging markets. Notably, FY25 saw P&P business growth of 3.5% year-on-year in constant currency terms, up from 2.3% in FY24 and 1.8% in FY23. Still, that wasn't enough to prevent earnings downgrades. While management highlighted a 75% year-on-year jump in FY25 ER&D bookings, the discretionary nature of these deals raises the risk of execution delays—potentially weighing on HCL's organic growth prospects in FY26. In a report dated 22 April, Kotak Institutional Equities noted that HCL had benefited from mega deal ramps over the past two years but now needs additional momentum to sustain strong growth. The brokerage has cut its FY25–27 earnings per share (EPS) estimates by about 2–5%. Nomura Research has also cut its FY26-27F EPS by about 2% and target price from ₹ 1,840 (based on 25x FY27F EPS) to ₹ 1,670 (23x FY27F EPS), acknowledging rising macro uncertainty risks. Also read | Mayhem for IT stocks as FIIs pull out big. What lies ahead? Despite Wednesday's gains, HCL's shares are down about 20% from the 52-week high of ₹ 2,012.20 apiece seen on 13 January. Valuations are not comforting, however. At FY26 price-to-earnings, it is trading at multiple of 23x, showed Bloomberg data. This is a slight premium to Infosys Ltd and almost on a par with Tata Consultancy Services Ltd, leaving little room for error.
Business Standard
23-04-2025
- Business
- Business Standard
HCL Technologies Ltd Spikes 5.88%, BSE Information Technology index Rises 2.34%
HCL Technologies Ltd has lost 2.3% over last one month compared to 6.35% fall in BSE Information Technology index and 2.75% rise in the SENSEX HCL Technologies Ltd rose 5.88% today to trade at Rs 1567.2. The BSE Information Technology index is up 2.34% to quote at 34289.19. The index is down 6.35 % over last one month. Among the other constituents of the index, Magellanic Cloud Ltd increased 4.14% and Onward Technologies Ltd added 3.48% on the day. The BSE Information Technology index went down 0.57 % over last one year compared to the 8.66% surge in benchmark SENSEX. HCL Technologies Ltd has lost 2.3% over last one month compared to 6.35% fall in BSE Information Technology index and 2.75% rise in the SENSEX. On the BSE, 49420 shares were traded in the counter so far compared with average daily volumes of 1.45 lakh shares in the past one month. The stock hit a record high of Rs 2011 on 13 Jan 2025. The stock hit a 52-week low of Rs 1235 on 04 Jun 2024.
Business Upturn
23-04-2025
- Business
- Business Upturn
HCLTech shares spike 6% as Q4 numbers come in-line with estimates, FY26 guidance at 2-5%
By Aditya Bhagchandani Published on April 23, 2025, 09:22 IST HCL Technologies Ltd shares surged nearly 6% on April 23 to ₹1,567 on the NSE, gaining ₹87.10 from the previous close of ₹1,479.90 after the company posted a steady Q4 performance and upbeat guidance for FY26. The company's revenue for Q4 FY25 stood at ₹30,246 crore, reflecting a 1.2% sequential growth and a 6.1% increase YoY. In constant currency (CC) terms, revenue was down 0.8% QoQ but rose 2.9% YoY. USD revenue came in at $3,498 million, down 1% QoQ and up 2% YoY. HCL's digital segment grew 12.6% YoY, contributing 40.7% of overall services revenue. EBIT for the quarter stood at ₹5,442 crore, down 6.5% QoQ but up 8.4% YoY, with an EBIT margin of 18.0%. Net profit was ₹4,307 crore, rising 8.1% YoY despite a 6.2% sequential drop. HCL's Free Cash Flow (FCF) was $2,501 million, while Operating Cash Flow (OCF) reached $2,632 million. The board announced a final dividend of ₹18 per share, marking the 89th consecutive quarter of dividend payout. Full-Year FY25 Highlights Total revenue : ₹1,17,055 crore (up 6.5% YoY) Constant currency growth : 4.7% USD revenue : $13.84 billion (up 4.3%) EBIT : ₹21,420 crore (EBIT margin: 18.3%) Net profit : ₹17,390 crore (up 10.8%) EPS : ₹64.09 Total dividend: ₹60 per share (93.5% payout ratio) FY26 Guidance HCLTech expects FY26 constant currency revenue growth to be in the 2.0%–5.0% range, with services revenue and EBIT margin projected to lie between 18.0% and 19.0%. Leadership Comments Chairperson Roshni Nadar Malhotra remarked that the company delivered 'another year of robust growth with its future-ready portfolio,' while CEO C Vijayakumar highlighted strong execution, AI-driven bookings worth $3 billion, and resilience amid global uncertainties. At the time of reporting, HCLTech's market cap stands at ₹4.25 trillion, with a P/E ratio of 24.92 and dividend yield at 3.44%. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
