HCLTech Q4 Results Review - FY25 Revenue Guidance On The Weaker Side: Nirmal Bang

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.HCLTech Ltd. recorded a strong exit to FY24, notching up a revenue of $3.43 billion in Q4 FY24, up in constant currency terms on a YoY basis at 6% and 0.3% sequentially, missing our estimate by 0.5%. Most of the growth YoY came from the large Verizon deal continuing to ramp up from Q3 through Q4. The FY25 revenue guidance has come in a bit lower than expected at 3-5% in CC terms (we expected 4-7%). At midpoint this comes out to be slower than the 5% growth in FY24. 18-19% Ebit margin guidance is maintained. HCLTech says that it is likely that within its peer set, FY25 may represent the third year in succession of peer set leading revenue growth despite the slowdown. The weak revenue guidance for FY25 is largely due to a weak H1 driven by a decline of 2% in QoQ in Q1 FY25 due to productivity pass back for many of its large clients and the impact of offshoring of a large contract. It also indicated that there could be some impact in Q2 because of the disengagement from the State Street JV. Importantly, it indicated just as TCS and Infosys did, compression in the existing book of business where it says that it has built in similar kind of compression as it saw in FY23 and FY24..Click on the attachment to read the full report:.HCLTech Q4 Results: Profit Falls 8%, Revenue Growth Muted.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

HCLTech Q4 Results Review - FY25 Revenue Guidance On The Weaker Side: Nirmal Bang

Higher priced software is displacing IT services spends.

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HCLTech Q4 Results Review - FY25 Revenue Guidance On The Weaker Side: Nirmal Bang

Higher priced software is displacing IT services spends.

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