HCL Technologies Q3 FY25 Earnings Announce Today
HCL Technologies is expected to report a positive performance for Q3 FY25, with growth across its key financial areas. Revenue in constant currency is predicted to increase, by the strong results in both the products and services segments. The company is on track for a solid quarter with positive projections. Analysts predict a 4.4% growth in constant currency terms and a 3.3% increase in revenue in US dollars, reaching $3.56 billion.
Improved EBIT Margin
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The company’s EBIT margin is expected to improve, indicating better cost control and higher profits. This margin increase, along with growth in profit after tax (PAT), points to strong financial health for the company this quarter.
Main Factors of Growth for Q3 FY25
Several factors are expected to help HCL Technologies grow in Q3. The company is likely to see a seasonal increase in its products business and steady growth in its services business. A recent acquisition in communication technology is also expected to boost revenue. While wage hikes may affect profits slightly, the growth in the products business should help balance this.
Revenue Growth Projections
HCL Technologies is expected to see revenue growth, mainly in its software business. Multiple brokerages are optimistic about the company’s performance, and their projections suggest steady growth. Analysts believe the company is well-positioned for success. HCL Technologies is expected to see year-on-year revenue growth of 4.3% to 6.8% for Q3 FY25
Adjusted Net Profit and Margin Forecasts
HCL Technologies’ adjusted net profit is expected to show growth for the quarter, with analysts projecting a steady increase. Despite varying predictions from brokerages, the overall outlook remains positive. The expected improvements in both adjusted profit and margins indicate that HCL is managing its operations effectively, driving strong financial performance.
Growth in Products & Platforms Business
HCL Technologies’ Products & Platforms business is expected to be a key player of growth in Q3, with seasonal factors likely boosting its performance. Analysts expect the business to show strong growth, contributing positively to the company’s overall revenue. This growth is expected to be a key factor in HCL’s positive results for the quarter.
HCL Technologies Q3 FY25
| Net Profit | Rs 4,591 crore |
| Revenue from Operations | Rs 29,890 crore |
| EBIT Margin | 19.5% |
| EBIT | Rs 5,821 crore |
| Dividend | Rs 18 per share (includes Rs 6 special dividend) |
| Revenue Growth Guidance              | 4.5% – 5% |
| EBIT Margin Guidance | 18% – 19% |
| Return on Invested Capital (ROIC) | 36.6% (overall), 44.7% (services) |
| Free Cash Flow to Net Income (FCF/NI) | 134% |
| Cash Balance | Rs 27,707 crore |
Conclusion
HCL Technologies is expected to have a successful Q3 FY25, with strong growth in both its products and services businesses. Strategic investments and effective cost management will support the company’s continued growth. With a positive outlook, HCL Technologies is well-positioned for success in the competitive global market.
