HCL Technologies, during the quarter, posted revenue marginally below expectations, while EBIT and net profit came in higher than expected. The sales came in at USD 1,433 million V/s USD 1,469 million expected, a qoq growth of 1.9%.In Constant Currency (CC) terms, the sales grew by 3.2% qoq. In rupee terms, revenues came in at Rs 87.35 billion V/s Rs 89.45 billion expected, up 3.7% qoq.
On the operating front, the EBIT margins came in at 23.9% a decline of 32bps qoq V/s expected 22%. The utilization levels dipped to 82.7% ( including trainees) V/s 84.5% in 4QFY2014. Consequently, PAT came in at Rs. 18.73 billion V/s Rs. 15.91 billion expected, a growth of 2.1% qoq.
Commenting on the result, Sarabjit Kour Nangra, VP research, IT, Angel Broking said, ''In terms of order flow, the HCL has signed 15 Transformational engagements with more than USD 1 billion of total contract value in this quarter, led by global infrastructure services, engineering and R&D services, application services and the digitalization suite across software product and platform engineering. Manufacturing and Consumer Services led the wins in verticals and US in geographies. We maintain our buy rating on the stock with price target of Rs 1,968.''
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