Key Points
The reason why HCL Tech's Q4 results comes encouraging is that this IT giant's exposure in troubled BFSI is limited and not just that large deal ramp-ups in the verticals have led to a strong segmental growth of 6.9% in constant currency, which is far better than the weak growth reported by its peers TCS and Infosys..
Additionally, in North America where the banking crisis first broke out in March 2023, HCL Tech saw 1.8% QoQ growth in CC, while Infosys and TCS reported qoq revenue declines of 3.8% and 0.8% respectively in the region..
On these tech giant's Q4 performances, ICICI Securities analysts in their research note said, "HCLTs limited exposure to troubled BFSI clients and recent large deal ramp-ups in the ..
However HCL Tech is better placed than peers in the medium to long term because of lower attrition as compared to peers, its large deals momentum in service business and new projects from Europe region will aid growth.".
Due to our higher tax rate assumption, we lower our . Further, in its note, Emkay Global said that HCL Tech is well-positioned to weather the storm, given its comprehensive service offerings and well-balanced portfolio across RTB and discretionary spends..
You might be interested in
IT stocks at inflection point? Both FIIs, mutual funds up stake in Q3
24, Jan, 24FIIs and mutual funds increase their shareholding in IT stocks as growth momentum may bottom out, leading to a return to growth in CY24. MF holding in Tech Mahindra rises to 14.24% in Q4. FIIs and MFs raise stake in Wipro. FIIs show faith in HCL Technologies and LTI Mindtree. MFs pare stake in Infosys, while FII ownership increases. TCS sees no change in shareholding. BNP Paribas says revenue and margin of top IT companies exceed expectations. Companies' guidance and positive tilt indicate a recovery. Nifty IT index rallies in November, December, and January. BNP Paribas picks Infosys, TCS, and HCL Tech as preferred picks.