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HCL Technologies (HCLT.BO; Rs511.15; 1L)
Takeaways from Mumbai - HCLT presented at our India Investor Conference
today. Presented below are key highlights.
Demand strong; margins likely flattish yoy - Management sounded quite
optimistic on the demand outlook. They reiterated their aim of revenue growth in
the top quadrant. Deal pipeline continues to look good. On margins,
management indicated that they should be flattish yoy.
Pricing stable - The pricing environment continues to be stable. COLA (cost of
living adjustment) related price increases coming through in some cases, though
on an overall basis the situation is still competitive.
Future outlook - Growth to continue among the top quadrant with stable
margins. However, the company is in the planning stage right now (for FY12) and
further clarity will emerge only with the annual results (FY end June).
India business - Company incubated this about three years back. The focus is
on three verticals - financial services, energy & utilities and government
business. Management expects this business to grow well going forward.
Remains our top pick - HCLT continues to remain our top pick. We expect the
company to deliver leading growth rates. 4QFY11 results where margins are
expected to improve qoq should help.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
HCL Technologies (HCLT.BO; Rs511.15; 1L)
Takeaways from Mumbai - HCLT presented at our India Investor Conference
today. Presented below are key highlights.
Demand strong; margins likely flattish yoy - Management sounded quite
optimistic on the demand outlook. They reiterated their aim of revenue growth in
the top quadrant. Deal pipeline continues to look good. On margins,
management indicated that they should be flattish yoy.
Pricing stable - The pricing environment continues to be stable. COLA (cost of
living adjustment) related price increases coming through in some cases, though
on an overall basis the situation is still competitive.
Future outlook - Growth to continue among the top quadrant with stable
margins. However, the company is in the planning stage right now (for FY12) and
further clarity will emerge only with the annual results (FY end June).
India business - Company incubated this about three years back. The focus is
on three verticals - financial services, energy & utilities and government
business. Management expects this business to grow well going forward.
Remains our top pick - HCLT continues to remain our top pick. We expect the
company to deliver leading growth rates. 4QFY11 results where margins are
expected to improve qoq should help.
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