Stock to watch: HCL Tech shares in focus ahead of Q2 results

The stock has been in an uptrend over the past five days and gained nearly 3% even amid overall negative market sentiments.

HCL Tech is expected to report a revenue growth in the range of 7-9% year-on-year for the quarter ended September 2024. Estimates by five brokerages peg revenue figures between Rs 26,672 crore and Rs 28,710 crore in Q2FY25.

As for the net profit in the reporting quarter, the growth is estimated in a wide range of 4.9% to nearly 15%. The PAT range could be between Rs 3,832 crore and Rs 4,097 crore.

Nuvama remains most conservative among brokerages on company’s PAT and revenue figures while PhillipCapital remains most bullish. As for revenue, Axis Securities’ numbers are ahead of its peers.

Nuvama sees a 8% YoY and 2.6% QoQ growth in HCL Tech’s revenue at Rs 26,672 crore, while a net profit growth at 6% YoY to Rs 3,832 crore. PAT is expected to decline by 4.2% QoQ.”Earnings Before Interest and Taxes (EBIT) in the reporting quarter is pegged at Rs 4,934 crore which could go up 3.9% YoY and 6.9 QoQ. Meanwhile, EBIT margins are expected at 18.5% which is a 69 bps YoY climbdown while a 71 bps QoQ uptick,” the brokerage said.JM Financial pegged revenue growth around 7.1% YoY and 1.8% QoQ at Rs 28,557 crore, while net profit at Rs 4,036 crore in the reporting quarter which is a 5.3% YoY uptick while a 5.2% QoQ decline.

EBIT could go up by 3.1% YoY and 6% QoQ at Rs 5,085 crore while EBIT margin is expected at 17.8% for the July-September quarter which could come down by 70 bps on a YoY basis while rising by 70 bps, sequentially.

The brokerage has estimated a 50 bps cross currency tailwind for HCL adding that it has built c.90 bps impact due to state street divestiture.

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