- HCL Tech’s net income for the first quarter of 2024 is 42.6 billion rupees, a 21% increase year-over-year (y/y), surpassing the estimate of 38.45 billion rupees.
- Revenue for the quarter is 280.6 billion rupees, up 6.7% y/y, meeting the estimate of 280.25 billion rupees.
- IT and business services revenue is 209.1 billion rupees, marking a 6.5% increase y/y, slightly above the estimate of 208.47 billion rupees.
- Engineering and R&D Services revenue is 44.6 billion rupees, a 10% rise y/y, though below the estimate of 46.1 billion rupees.
- Total costs for the quarter amount to 234.5 billion rupees, a 6.9% increase y/y.
- Employee benefits expenses stand at 164.1 billion rupees, up 9.3% y/y.
- Outsourcing costs decrease by 2.5% y/y to 35.4 billion rupees.
- Other income is 11 billion rupees, significantly higher than the 3.44 billion rupees reported last year.
- Dividend per share for the quarter is set at 12 rupees.
- HCL Tech shares rise by 3.2% to 1,560 rupees, with 6.43 million shares traded.
- Analyst recommendations include 22 buys, 14 holds, and 7 sells.
HCL Technologies on Smartkarma
According to analyst coverage on Smartkarma by Wium Malan, CFA, the sentiment on HCL Technologies leans towards bearish with the headline “HCL Technologies: Negative Technical Analysis Signals”. In the provided insight, the analyst delves into a technical analysis of HCL Technologies, focusing on various factors such as earnings forecast revision trends, momentum indicators, and current valuation levels. Following HCL Technologies‘ fiscal 4Q2024 earnings report, a noticeable trend of near-term earnings estimates downgrades has been observed. Based on the current momentum indicators, indications suggest a potential prolonged period of underperformance for the company. Additionally, HCL Technologies is currently trading approximately one standard deviation above its rolling 5-year historic average PE ratio.
A look at HCL Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, HCL Technologies shows a promising long-term outlook. With a strong dividend score of 5 and high resilience score of 5, the company demonstrates stability and wealth distribution to shareholders. Additionally, scoring well in momentum at 4 indicates positive market sentiment and growth potential. While the value and growth scores are moderate at 3, HCL Technologies‘ overall outlook seems positive, positioning it well for sustained performance in the software development sector.
HCL Technologies Limited specializes in providing software development and related engineering services, utilizing a wide range of technologies such as internet and e-commerce, networking, embedded software, and wireless communications. The company’s diversified technological expertise allows it to adapt to changing market demands and stay competitive in the industry. With solid scores in dividend yield, resilience, and momentum, HCL Technologies appears to be a reliable investment choice for long-term investors seeking stability and growth in the software services market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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