A day after TCS and Infosys declared their Q3 financial results, other IT majors Wipro and HCL Tech are on Friday set to announce their earnings for the December 2023 quarter. Here’s what analysts expect:
HCL Q3 Results Preview
On HCL’s Q3 earnings, Elara said, “We anticipate sequential revenue growth of 4.8 per cent in CC terms. This is backed by solid demand in ER&D business and strong seasonal growth for product business (30 per cent QoQ growth), which may drive revenue growth.”
It also expects traction of 1.9 per cent in HCL Tech’s services business from Verizon deal. However, higher furloughs in Hi-Tech and BFSI could drag down growth.
Brokerage firm PhillipCapital pegged HCL Tech’s profit at Rs 4,258.50 crore for the December 2023 quarter, which is 4 per cent higher than Rs 4,096 crore a year ago. It sees sales rising 5.1 per cent YoY to Rs 28,067 crore against Rs 26,700 crore YoY. Dollar revenues are seen at $3,369, up 4.5 per cent QoQ while growth in CC terms is seen at 4.9 per cent. Ebit margin is seen at 19.2 per cent.
PhillipCapital also expects HCL Tech to retain its FY24 revenue guidance of 5-6 per cent in CC terms and Ebit margin guidance for 18-19 per cent.
Wipro Q3 Results Preview
On Wipro, Elara said, “We anticipate a sequential CC revenue contraction of 1.5%, in the lower end of the guided range of -2 per cent to +1 per cent. Growth pull-back continues for the mortgage business in BFSI, and tepid macro may weigh on sequential growth with furlough in Q3.”
Axis Securities also expects Wipro to post revenue de-growth of 0.6 per cent sequentially in rupee terms. The lower onsite expenses (lower by 87bps sequentially), however, will support operating margins.
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