About the Company:
HCL Technologies is a leading global technology company that helps global enterprises to transform their businesses through Digital technology transformation. The company operates out of 46 countries and has consolidated revenues of US$ 9.94 billion, for the financial year ended 31st March 2020. The company leverages its multi-service delivery in key industry verticals including Financial Services, Manufacturing, Telecommunications, Media, Publishing, Entertainment, Retail & CPG, Life Sciences & Healthcare, Oil & Gas, Energy & Utilities, Travel, Transportation & Logistics, and Government.
QoQ & YoY Performance:
India’s one of the leading IT Company has declared the results for its last quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company stood at Rs. 18,587 crores, went slightly up by 2.49% in March quarter 2020. Total expenditure (excluding interest and depreciation expenses) is Rs. 13,729 crores were marginally up by 1.65%. EBITDA numbers rose by 4.58%.
- YoY Performance: The Company has reported jumped by 16.24% in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company increased to 10.75%. EBITDA numbers climbed to 32%.
- Profitability of the company: The net profit of the company surged to 24.39% to Rs 3,172 crore in the quarter ended March 2020 as against Rs 2,550 crore during the previous period in the same quarter.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs. 514.30 per share, down by 1.02%. The company has posted decent quarterly numbers and the board has recommended a Final Dividend of Rs. 2/- per equity share of Rs. 2/- each of the Company for the Financial Year 2019-20. HCL Tech has posted strong growth at 16.7% YoY in constant currency is led by industry-leading organic growth and acceleration of Mode 2 and Mode 3 revenue. However, the company’s Gross Cash stands at the US $ 2,032 mn and Net Cash at US $ 1,359 mn at the end of March 31st, 2020. Moreover, the company’s Return on Equity (ROE) stood at 23.6%. Hence, we recommend it to ‘BUY’ with a target of 590 levels for the long-term vision.