IT giant HCL Technologies Ltd’s board will meet on Tuesday to consider the financial results for the first quarter ended June 30, 2022 (Q1FY23), along with which the board will also consider payment of second interim dividend for the financial year 2022-23.
“We would like to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, July 12, 2022 to consider amongst others: 1) Un-audited Financial Results of the Company for the quarter ended June 30, 2022. 2) Payment of 2nd Interim dividend for the financial year 2022-23,” the Indian IT company had informed in an exchange filing last week.
The record date for determining the entitlement of the shareholders for the payment of aforesaid interim dividend shall be next week, Wednesday, July 20, 2022, subject to the approval of the interim dividend by the board of directors, HCL Tech added.
Kickstarting the earnings season, HCL Tech’s peer Tata Consultancy Services (TCS) announced its June quarterly earnings on Friday, which had missed analysts’ estimates.
HCL Tech had reported a nearly 24% jump in its Q4FY22 net profit at ₹3,593 crore whereas revenue for the March quarter rose 15% from a year earlier to ₹22,597 crore.
For the quarter ended June 2022, global brokerage BNP Paribas on HCL Tech’s Q1 expectations said that “We expect 1.4% q-q USD revenue growth (2.9% q-q in CC) as strong revenue growth is offset by productivity commitments. We model a 9bp contraction in EBIT margin q-q at 17.9% as the company continues to make incremental investments and faces cost pressures.”
The brokerage expects HCL Tech to maintain its FY23 guidance of 12-14% CC revenue growth and EBIT margin of 18-20%. And suggested that investors should look out for Details on new disclosures for the product business, FY23 revenue and margin outlook, risk on demand/outlook from macro headwinds, outlook on Engineering Research & Development, products and platforms vertical’s growth guidance and turnaround progress, Mode 1 and Mode 3 performance, large deal wins and pipeline.
Headquartered in Noida, India, HCL Technologies is an Indian multinational IT services and consulting company. The IT stock is down about 39% in 2022 (YTD) so far as compared to an 8% fall in benchmark Sensex.
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