HCL Technologies Q3FY25 Preview: PAT likely to grow 7.1%, margin may expand by 50 bps

Noida-based IT services major HCL Technologies is slated to report its October-December earnings on January 13 (Monday). For the seasonally strong quarter for the software business, Zee Business research estimates the company's consolidated profit after tax or PAT to rise 7.1 per cent sequentially from Rs 4,235 crore in the preceding September-ended quarter to Rs?4,535 crore. The company is experiencing?seasonal tailwinds from renewals in its products business

Revenue at the IT company is also seen rising 4 per cent quarter-on-quarter (QoQ) to Rs? 30,030 crore in comparison to Rs?28,862 crore in Q2FY25. The revenue in dollar terms, meanwhile,?during the review quarter is likely to register 3.2 per cent growth from Rs?344.5 crore in the September quarter to Rs?355.6 crore.

Furthermore, analysts have pegged its revenue in constant currency terms—or revenue without the impact of currency fluctuations—to grow by 4?per cent sequentially.

Estimates on operational performance for the December quarter

For the review quarter, the?IT major is estimated to report Rs 5,750 crore in earnings before interest and taxes (EBIT). The same stood at Rs 5,362 crore in the previous quarter, marking a 7.2 per cent rise QoQ. Also, the EBIT margin is seen climbing 0.5 per cent or 50 basis points to 19.1 per cent in the September-December period from 18.6 per cent recorded in the September quarter.

Guidance outlook

Analysts at Zee Business?expect the company to retain revenue growth and margin guidance for FY25.

HCL Technologies share price performance

Amid buoyancy in the broader IT pack, shares of HCL Technologies ended over 3 per cent higher at Rs 1,996.2 per share on the BSE after hitting a new 52-week high price in intraday trade today. In the last one year, the stock has rallied 37 per cent, while the Nifty IT index during the same time has climbed 29 per cent.
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