HCL Tech shares rise ahead of Q1 results; can the IT giant beat street expectations?
Mumbai/IBNS: Shares of HCL Technologies rose in early trade on Monday ahead of the company's announcement of its financial results for the first quarter of FY27, media reports said.
HCL Tech Shares Gain Ahead of Q1 Results
The stock opened at Rs. 1,162 apiece against the previous close of Rs. 1,164 and climbed to an intraday high of Rs. 1,183, gaining nearly 0.61 percent in early trading.
Axis Securities Expects Revenue Growth
Brokerage firm Axis Securities has projected a quarter-on-quarter revenue growth of 3.5 percent for HCL Technologies in the June quarter.
However, the brokerage expects the company's EBIT margin to decline by 40 basis points sequentially, citing restructuring costs and higher investments.
Key Factors to Watch
According to Axis Securities, key aspects that investors should monitor in the company's earnings announcement include:
- Management's outlook on the Services and Engineering Research & Development (ERD) businesses.
- Performance of the software business.
- Updates on the deal pipeline.
- FY27 revenue guidance.
"EBIT margins are expected to decline by 40 bps QoQ due to restructuring costs and higher investments," Axis Securities said in a statement quoted by Mint.
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