HCLTech Q3 Preview: Revenue may jump up to Rs 30,200 cr; PAT to rise 5-10%

HCLTech Q3 Preview: Noida-headquartered information technology (IT) company HCLTech will announce its Q3FY25 results today, January 13, 2025. 

 

HCLTech's Q3FY25 performance is expected to reflect steady growth despite industry challenges such as furloughs and cross-currency headwinds. 

 

Analysts project revenue growth driven by strong performance in Software and Products & Platforms, with improved Earnings before interest, tax (Ebit) margins supported by operational efficiencies. 

 

Revenue is estimated to exceed Rs 30,000 crore, reflecting 4-6 per cent Q-o-Q and Y-o-Y growth, while adjusted profit after tax (PAT) is forecasted to grow by 5-10 per cent Y-o-Y. Margins are expected to improve across the board, boosted by robust deal wins and strategic focus, signalling a positive outlook despite macroeconomic pressures.

 

 

Meanwhile, on the bourses, HCLTech shares settled 3.13 per cent higher at Rs 1,995.60 per share on Friday, January 10, 2025. The HCLTech share has gained about 2 per cent in the last five trading sessions, while it has risen about 1.4 per cent in the last one month.

 

Given this, here’s a look at what brokerages expect from HCLTech in Q3FY25: 

  

Prabhudas Liladher

 

Prabhudas Liladher expects HCLTech’s Q3FY25 growth to be driven by its Software business, even as the IT Services segment faces challenges from furloughs. Analysts forecast a 4.6 per cent Q-o-Q growth in constant currency terms, moderated by an anticipated currency headwind of 80 basis points. Margins are projected to improve by approximately 60 basis points Q-o-Q, despite hurdles such as wage hikes and cross-currency impacts. The company is expected to maintain its organic revenue and margin guidance, with deal wins estimated between $2–2.5 billion. 

 

Given this, the revenue is predicted to come in at Rs 30,200 crore, reflecting a 4.6 per cent Q-o-Q and 6.2 per cent Y-o-Y increase. Ebit is expected at Rs 5,800 crore, representing an 8.2 per cent Q-o-Q and 3.3 per cent Y-o-Y growth, with Ebit margins at 19.2 per cent. The adjusted PAT is forecasted to be Rs 4,520 crore, up 6.8 per cent Q-o-Q and 3.9 per cent Y-o-Y.

 

Nuvama Institutional Equities 

 

Nuvama Institutional Equities projects that HCLTech will report a 4.5 per cent Q-o-Q constant currency (CC) growth in Q3FY25. This growth is expected to be driven by IT Services (+1.5 per cent Q-o-Q), Engineering and R&D (+1.0 per cent Q-o-Q), and Products & Platforms (+25 per cent Q-o-Q). Ebit margins are anticipated to improve by 150 basis points Q-o-Q, and the company is likely to revise its FY25 revenue growth guidance to 4-5 per cent CC Y-o-Y for Services, with margins projected in the range of 18-19 per cent. 

 

Thus, analysts estimate revenue at Rs 30,110.9 crore, reflecting a 4 per cent Q-o-Q and 6 per cent Y-o-Y growth. Ebitda is expected to be Rs 7,087.4 crore, up 11 per cent Q-o-Q and 5 per cent Y-o-Y. Core PAT is projected at Rs 4,790.1 crore, marking a 13 per cent Q-o-Q and 10 per cent Y-o-Y increase.

 

HDFC Securities  

 

HDFC Securities anticipates that HCLTech’s Q3FY25 performance will reflect the ongoing growth divergence within the IT sector. Tier-1 IT companies are expected to post revenue growth in the range of +5 per cent to -1 per cent Y-o-Y, while mid-tier IT firms could experience a broader range of +20 per cent to -1 per cent Y-o-Y. Despite challenges from furloughs and cross-currency headwinds, HCLTech’s growth is expected to be supported by improved decision-making cycles and discretionary spending, even in the absence of mega deals. 

 

Analysts project the company’s revenue to come in at 30,091 crore, reflecting a 4.3 per cent Q-o-Q and 5.8 per cent Y-o-Y growth. Ebit is estimated at approximately Rs 5,800 crore, showing an increase of 9.1 per cent Q-o-Q and 4.2 per cent Y-o-Y, with Ebit margins expected to reach 19.4 per cent. Adjusted PAT is projected to be around Rs 4,500 crore, marking an 8.2 per cent Q-o-Q and 5.3 per cent Y-o-Y rise.