HCL Tech set to reveal Q2FY24 results with soft growth predicted

HCL Technologies is all set to unveil its fiscal Q2 results for 2023-24 today, alongside industry peer Infosys. Market experts anticipate that India's third-largest IT services firm may report slower growth in the September quarter, potentially revising its revenue guidance from 6-8% down to 4-6%.

According to JM Financials, HCL Tech is likely to show modest growth and improved margins during this quarter. A soft Q2 and only modest improvements in the second half could lead to a revised outlook, affecting all major players except Infosys.

In Q1FY24, HCL Tech reported a 7.6% YoY growth in consolidated net profit but faced an 11.27% dip in profit after tax compared to the previous quarter. This was mainly due to a significant decrease in Engineering Research & Development (ER&D) revenue, which accounts for 15.4% of the company's overall income. The ER&D business experienced a 5.2% sequential drop and a 1.8% YoY dip due to project reductions in the hi-tech and telecom sectors.