HCL Technologies is set to unveil its fiscal fourth-quarter results today, joining major players like Infosys, Wipro, and Tata Consultancy Services (TCS), who have already shared their earnings. Analysts predict that HCL Tech may experience modest growth in both revenue and profits, primarily driven by seasonal downturns in its product segments and ongoing margin challenges. According to a poll conducted by CNBC TV18, the tech giant is anticipated to report a profit of approximately ₹4,300 crore with revenues reaching around ₹30,273 crore for the quarter. Furthermore, earnings before interest and taxes (EBIT) are projected to be around ₹5,482 crore, indicating a year-over-year revenue increase of 5% and an 8% rise in net profit.
Key Factors Influencing HCL Tech’s Performance
An analysis from Sharekhan has highlighted several critical aspects to consider:
- Sequential Revenue Growth: HCL Tech is expected to show a -0.7% decline in revenue growth (in constant currency terms) due to seasonal factors affecting its product business.
- Margin Pressures: A decrease of 110 basis points in EBIT margin is anticipated, influenced by residual wage hikes and the typical seasonal slowdown.
What to Watch For
As HCL Tech prepares to announce its results, several points of interest emerge:
- Macro Economic Influence: Observing how decision-making slowdowns and broader economic conditions are affecting overall business performance.
- New Contract Value (TCV): Monitoring the impact of new deals on revenue streams.
- Verizon Deal Impact: Evaluating how the anniversary of the Verizon deal affects revenues.
- Quarterly Performance Trends: Understanding revenue growth trends during the traditionally sluggish June quarter.
- Discretionary Spending Trends: Assessing the strength of discretionary spending within the current economic environment.
- Margin Aspirations: Reviewing the conditions necessary to achieve the targeted EBIT margin band of 19-20%.
Earlier this year, HCL Tech reported a profit of ₹4,591 crore for the third quarter, marking a 5.54% increase compared to ₹4,350 crore from the previous year. The company recorded operational revenues of ₹29,890 crore, reflecting a growth of 5.07% from ₹28,446 crore in Q3 FY24.
Upcoming Announcements
In a recent regulatory filing, HCL Technologies confirmed the timing for their board meeting to discuss the fourth-quarter and annual results for FY25, which ended on March 31, 2025. The announcement is scheduled for today, April 22, 2025, following the close of Indian stock markets. After the results are disclosed, HCL Tech’s senior management will host an audio conference call at 7:30 PM (IST) for an in-depth discussion of the outcomes, followed by a Q&A session.
Stay tuned for live updates and expert analysis as we delve into the expectations surrounding HCL Tech’s Q4 performance, including key figures, dividend announcements, and growth guidance for FY26.
