#COMPANY #POTENTIAL
โข India is the second largest producer and consumer of cement, with a capacity of ~600 MTPA. The industry is an essential contributor to the Indian economy, providing employment to millions of people and driving infrastructure development. From the fiscal year 2013-2022, Indian cement manufacturers have significantly increased their capacity by 217 MTPA. Of this, despite pandemic related interruptions, the last five fiscal years up to 2022 saw an additional 109 MT increase in capacity. As per Crisilโs estimate, Indian cement companies plan to expand and increase their capacity by 145-155 MT between FY23 and FY27 at a 4-5% CAGR on a high base. A 6-7% CAGR in cement demand during these five fiscal years will support the increase in supply. โข With plans to invest โน143 lakh crore on infrastructure between 2024-2030, Indiaโs infrastructure sector emerges as a potent driver of economic growth, presenting substantial opportunities for cement industry stakeholders. โข In the Union Budget for FY26 the central government made an allocation of ~โน11.2 lakh cr towards infrastructure. This is viewed as a positive boost to infrastructure and construction companies. โข Pradhan Mantri Awas Yojana (Housing for all) is a government initiative launched in 2015 aimed at providing affordable housing to eligible beneficiaries by 2024. The programme has two components: PMAY (Urban) and PMAY (Gramin), offering financial assistance to urban poor households and rural households, respectively. It provides credit-linked subsidies and interest subsidies to make housing more affordable. PMAY has been successful in providing affordable housing to millions of beneficiaries, particularly economically weaker sections, low-income groups and women. With continued focus on housing for all, the union cabinet has approved the proposal for extension of the Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) till FY29 for construction of additional 2 crore houses. For FY26, the government has allocated a budget of โน 54,832 crore towards the same.
โข India is the second largest producer and consumer of cement, with a capacity of ~600 MTPA. The industry is an essential contributor to the Indian economy, providing employment to millions of people and driving infrastructure development. From the fiscal year 2013-2022, Indian cement manufacturers have significantly increased their capacity by 217 MTPA. Of this, despite pandemic related interruptions, the last five fiscal years up to 2022 saw an additional 109 MT increase in capacity. As per Crisilโs estimate, Indian cement companies plan to expand and increase their capacity by 145-155 MT between FY23 and FY27 at a 4-5% CAGR on a high base. A 6-7% CAGR in cement demand during these five fiscal years will support the increase in supply. โข With plans to invest โน143 lakh crore on infrastructure between 2024-2030, Indiaโs infrastructure sector emerges as a potent driver of economic growth, presenting substantial opportunities for cement industry stakeholders. โข In the Union Budget for FY26 the central government made an allocation of ~โน11.2 lakh cr towards infrastructure. This is viewed as a positive boost to infrastructure and construction companies. โข Pradhan Mantri Awas Yojana (Housing for all) is a government initiative launched in 2015 aimed at providing affordable housing to eligible beneficiaries by 2024. The programme has two components: PMAY (Urban) and PMAY (Gramin), offering financial assistance to urban poor households and rural households, respectively. It provides credit-linked subsidies and interest subsidies to make housing more affordable. PMAY has been successful in providing affordable housing to millions of beneficiaries, particularly economically weaker sections, low-income groups and women. With continued focus on housing for all, the union cabinet has approved the proposal for extension of the Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) till FY29 for construction of additional 2 crore houses. For FY26, the government has allocated a budget of โน 54,832 crore towards the same.
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#COMPANY #OUTLOOK
โข The company expects installed cement capacity to reach ~49.5 MTPA by the end of FY25 (excluding the acquisition). The companyโs aim is to be a pan-India cement manufacturer, with a 130 MTPA cement manufacturing capacity by 2030. โข With an equivalent focus on building long-term raw material security, they are also participating in new limestone auctions and had won some of them, including the one in Rajasthan in North India. In line with their strategic priorities, they won two coal blocks in East India. This will help them to partially safeguard against the external rate volatilities. โข They are progressing well on the commitments to have 100% renewable energy (RE) by 2030 and complete fossil fuel replacement by 2035. As on Q3 FY25, they have signed 299 MW of long term RE power agreements under group captive arrangement. By the end of FY25, they envisage to have total operational RE capacity of 267 MW, including 57 MW from group captive arrangements and other captive capacities. On consumption basis, the management expect RE power share to be 40%-45% by the end of FY25. โข To make use of the opportunities unfolding before them and to realize their ambition of becoming a pan-India pure play cement company, they had decided to embark on a strategic growth drive. The growth plan includes capacity expansion through brownfield and greenfield projects as well as expansion of existing facilities, acquisitions and debottlenecking of production at an investment of โน9,000 cr over the next three years. The management will produce a more definitive plan by July 2025. โข In line with its strategy to exit non-core business, on 25th April 2023, Dalmia Cement (Bharat) Limited, a subsidiary of the company, entered into a binding agreement to sell its entire investment of 1.87 crore equity shares of โน10 each (42.36% of share capital) of Dalmia Bharat Refractories Limited at a consideration of โน800 crore to M/s Sarvapriya Healthcare Solutions Private Limited, a promoter group company. Sarvapriya had paid โน160 crore (20%) immediately on signing the contract and one tranche of nonconvertible debentures (NCD) of โน320 crore (40%) plus due interest of redemption was received in FY24. The 2nd tranche of โน320 crore (40%) was due for redemption in September 2024.
The company recently signed a definitive agreement with Jaiprakash Associates (JPA) for the acquisition of a cement manufacturing unit with a production capacity of 9.4 MTPA, clinker with a capacity of 6.7 MTPA and a thermal power plant of 280 MW at an Enterprise Value of โน5,836 cr. These plants are strategically located and will provide them with an entry into the highgrowth market of central India. The company discontinued its tolling arrangement in Central India with JPA after it entered insolvency proceedings. As of January 2025, the National Asset Reconstruction Company Limited (NARCL) remained the sole bidder for JPAโs assets. The company has continued to serve the Central market through its eastern plants, as it remains optimistic about acquiring JPAโs assets and aims to maintain its market presence in the region.
โข The company expects installed cement capacity to reach ~49.5 MTPA by the end of FY25 (excluding the acquisition). The companyโs aim is to be a pan-India cement manufacturer, with a 130 MTPA cement manufacturing capacity by 2030. โข With an equivalent focus on building long-term raw material security, they are also participating in new limestone auctions and had won some of them, including the one in Rajasthan in North India. In line with their strategic priorities, they won two coal blocks in East India. This will help them to partially safeguard against the external rate volatilities. โข They are progressing well on the commitments to have 100% renewable energy (RE) by 2030 and complete fossil fuel replacement by 2035. As on Q3 FY25, they have signed 299 MW of long term RE power agreements under group captive arrangement. By the end of FY25, they envisage to have total operational RE capacity of 267 MW, including 57 MW from group captive arrangements and other captive capacities. On consumption basis, the management expect RE power share to be 40%-45% by the end of FY25. โข To make use of the opportunities unfolding before them and to realize their ambition of becoming a pan-India pure play cement company, they had decided to embark on a strategic growth drive. The growth plan includes capacity expansion through brownfield and greenfield projects as well as expansion of existing facilities, acquisitions and debottlenecking of production at an investment of โน9,000 cr over the next three years. The management will produce a more definitive plan by July 2025. โข In line with its strategy to exit non-core business, on 25th April 2023, Dalmia Cement (Bharat) Limited, a subsidiary of the company, entered into a binding agreement to sell its entire investment of 1.87 crore equity shares of โน10 each (42.36% of share capital) of Dalmia Bharat Refractories Limited at a consideration of โน800 crore to M/s Sarvapriya Healthcare Solutions Private Limited, a promoter group company. Sarvapriya had paid โน160 crore (20%) immediately on signing the contract and one tranche of nonconvertible debentures (NCD) of โน320 crore (40%) plus due interest of redemption was received in FY24. The 2nd tranche of โน320 crore (40%) was due for redemption in September 2024.
The company recently signed a definitive agreement with Jaiprakash Associates (JPA) for the acquisition of a cement manufacturing unit with a production capacity of 9.4 MTPA, clinker with a capacity of 6.7 MTPA and a thermal power plant of 280 MW at an Enterprise Value of โน5,836 cr. These plants are strategically located and will provide them with an entry into the highgrowth market of central India. The company discontinued its tolling arrangement in Central India with JPA after it entered insolvency proceedings. As of January 2025, the National Asset Reconstruction Company Limited (NARCL) remained the sole bidder for JPAโs assets. The company has continued to serve the Central market through its eastern plants, as it remains optimistic about acquiring JPAโs assets and aims to maintain its market presence in the region.
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Dalmia Bharat Limited 1750-1860
Expected level 2200
Support 1600
Expected level 2200
Support 1600
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HCL Technologies Company details report
HCL Technologies is a leading global IT services company headquartered in Noida, which is ranked amongst the top five Indian IT services companies in terms of revenues. Since its inception into the global landscape after its IPO in 1999, HCL Tech has focused on transformational outsourcing and offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, ER&D (engineering, research & development) services and BPO (business process outsourcing). The company leverages its extensive global offshore infrastructure and operates in 60 countries to provide multi-service delivery in key industry verticals. In 1976, a group of 8 engineers led by Shiv Nadar started a company for making personal computers. The company was re-named as Hindustan Computers Limited (HCL). Later, HCL Tech began as the R&D division of HCL Enterprises. The company originally was focused on hardware but, via HCL Technologies, software and services became the main focus. On 12th November 1991, HCL Technologies was spun off as a separate unit that would focus on software. The business is categorized into 3 segments namely: IT & Business Services (ITBS), ERD Services and HCL Software. ITBS enables enterprises to transform their business through a modernized infra stack across cloud, software-defined network & more. ERD services include engineering solutions for platform & product engineering. They have integrated ITBS & ERD from Q4 FY24 onwards. In 2019, HCL Technologies started a software product division called โHCLSoftwareโ, after completing the acquisition of IBM's software tools. Notable products under HCLSoftware include HCL Notes (personalized email/workflow platform), AppScan (providing developers security from data breaches & fixes), Connections (communication digital enterprise platform), Domino (app development), Commerce Cloud (cloud-based e-commerce management), Actian (analytics), BigFix (enterprise & workspace automation), Digital Experience (digital platform creation), Unica (digital marketing), amongst others. Its products & platforms cater to various industries offering digital transformation, analytics, AI, Gen-AI, automation, cloud, enterprise security & other solutions.
HCL Technologies is a leading global IT services company headquartered in Noida, which is ranked amongst the top five Indian IT services companies in terms of revenues. Since its inception into the global landscape after its IPO in 1999, HCL Tech has focused on transformational outsourcing and offers an integrated portfolio of services including software-led IT solutions, remote infrastructure management, ER&D (engineering, research & development) services and BPO (business process outsourcing). The company leverages its extensive global offshore infrastructure and operates in 60 countries to provide multi-service delivery in key industry verticals. In 1976, a group of 8 engineers led by Shiv Nadar started a company for making personal computers. The company was re-named as Hindustan Computers Limited (HCL). Later, HCL Tech began as the R&D division of HCL Enterprises. The company originally was focused on hardware but, via HCL Technologies, software and services became the main focus. On 12th November 1991, HCL Technologies was spun off as a separate unit that would focus on software. The business is categorized into 3 segments namely: IT & Business Services (ITBS), ERD Services and HCL Software. ITBS enables enterprises to transform their business through a modernized infra stack across cloud, software-defined network & more. ERD services include engineering solutions for platform & product engineering. They have integrated ITBS & ERD from Q4 FY24 onwards. In 2019, HCL Technologies started a software product division called โHCLSoftwareโ, after completing the acquisition of IBM's software tools. Notable products under HCLSoftware include HCL Notes (personalized email/workflow platform), AppScan (providing developers security from data breaches & fixes), Connections (communication digital enterprise platform), Domino (app development), Commerce Cloud (cloud-based e-commerce management), Actian (analytics), BigFix (enterprise & workspace automation), Digital Experience (digital platform creation), Unica (digital marketing), amongst others. Its products & platforms cater to various industries offering digital transformation, analytics, AI, Gen-AI, automation, cloud, enterprise security & other solutions.
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#SALES #GROWTH
The sales in FY24 stood at โน1,09,913 cr, a growth of 8%. In cc terms, revenue increased by 5%. Majority of the growth was driven by Financials, Manufacturing and others, while Technology was impacted during the year due to sluggish macro. Region-wise, Europe led the growth followed by Americas, while ROW declined by 7%. The TCV (new) in FY24 was $9,751 million, higher by 10%. In 9M FY25, revenue stood at โน86,809 cr, up by ~7% YoY with growth led by TMPE, Retail, Manufacturing & Tech, respectively. In cc terms, revenue grew by ~5% YoY. Discretionary spend has been improving across verticals. Region-wise, growth has been broad based with slight headwinds in ROW. New TCV de-grew by 3% YoY to ~$6.3 billion with a total of 50 large deals won. De-growth is due to a large base owing to the mega deal.
The sales in FY24 stood at โน1,09,913 cr, a growth of 8%. In cc terms, revenue increased by 5%. Majority of the growth was driven by Financials, Manufacturing and others, while Technology was impacted during the year due to sluggish macro. Region-wise, Europe led the growth followed by Americas, while ROW declined by 7%. The TCV (new) in FY24 was $9,751 million, higher by 10%. In 9M FY25, revenue stood at โน86,809 cr, up by ~7% YoY with growth led by TMPE, Retail, Manufacturing & Tech, respectively. In cc terms, revenue grew by ~5% YoY. Discretionary spend has been improving across verticals. Region-wise, growth has been broad based with slight headwinds in ROW. New TCV de-grew by 3% YoY to ~$6.3 billion with a total of 50 large deals won. De-growth is due to a large base owing to the mega deal.
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#EBITDA #GROWTH
EBITDA for FY24 stood at โน24,198 cr, increasing by 6.9%. Employee costs increased by 13% majorly due to higher wages & employee additions while other expenses were up by 4%. However, outsourcing cost declined by 2%. EBITDA in 9M FY25 stood at โน19,022 cr, an increase of 5% YoY. Employee costs rose by 7% YoY, subcontracting were higher by 3%. Other expenses were higher by 10% YoY. However, profits grew modestly on account of healthy revenue growth.
EBITDA for FY24 stood at โน24,198 cr, increasing by 6.9%. Employee costs increased by 13% majorly due to higher wages & employee additions while other expenses were up by 4%. However, outsourcing cost declined by 2%. EBITDA in 9M FY25 stood at โน19,022 cr, an increase of 5% YoY. Employee costs rose by 7% YoY, subcontracting were higher by 3%. Other expenses were higher by 10% YoY. However, profits grew modestly on account of healthy revenue growth.
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#PAT #GROWTH
The PAT for the company stood at โน15,710 cr in FY24, an increase of 6%. The finance cost for FY24 increased by 57% majorly due to rise in lease liabilities while depreciation costs were up by 1%. Other income during FY24 was higher by 10% to โน1,495 cr. The PAT in 9M FY25 stood at โน13,090 cr an increase of 12% YoY, due to one-time impact of other income coupled with higher operating profits. The finance costs for the company increased by 28% YoY while depreciation was lower by 1%. Other income stood at โน2,036 cr as compared to โน1,079 cr in 9M FY24. The rise was due to gain on divestment of its stake in Statestreet HCL Holding UK Ltd (a joint venture with State Street) done during Q1 FY25. The consideration received for de-consolidation was โน1,439 cr and net gain from the same was โน581 cr.
The PAT for the company stood at โน15,710 cr in FY24, an increase of 6%. The finance cost for FY24 increased by 57% majorly due to rise in lease liabilities while depreciation costs were up by 1%. Other income during FY24 was higher by 10% to โน1,495 cr. The PAT in 9M FY25 stood at โน13,090 cr an increase of 12% YoY, due to one-time impact of other income coupled with higher operating profits. The finance costs for the company increased by 28% YoY while depreciation was lower by 1%. Other income stood at โน2,036 cr as compared to โน1,079 cr in 9M FY24. The rise was due to gain on divestment of its stake in Statestreet HCL Holding UK Ltd (a joint venture with State Street) done during Q1 FY25. The consideration received for de-consolidation was โน1,439 cr and net gain from the same was โน581 cr.
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#EBITDA #MARGIN
The EBITDA margin for the company stood at 22.02% in FY24. Seasonality in the Software vertical along with higher marketing related costs had impact on the margins. Higher wages on account of hikes also led to margin contraction. The EBITDA margin stood at 21.9% in 9M FY25, down by 30 bps YoY. Margins for the ITBS vertical was flat YoY. Margins for the ERD services declined YoY which was offset by increase in the Software margins.
The EBITDA margin for the company stood at 22.02% in FY24. Seasonality in the Software vertical along with higher marketing related costs had impact on the margins. Higher wages on account of hikes also led to margin contraction. The EBITDA margin stood at 21.9% in 9M FY25, down by 30 bps YoY. Margins for the ITBS vertical was flat YoY. Margins for the ERD services declined YoY which was offset by increase in the Software margins.
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#PAT #MARGIN
The PAT margin for the company in FY24 was 14.3%. The margins were lower due to additional costs incurred. However, higher revenue & other income helped offset some of the headwinds. The PAT margin stood at 15.1% for the company during 9M FY25. It expanded by 70 bps YoY, majorly due to higher profits owing to higher other income on account of the exceptional gain. Adjusting for the same, margins wouldโve been higher by 20 bps YoY at 14.6%.
The PAT margin for the company in FY24 was 14.3%. The margins were lower due to additional costs incurred. However, higher revenue & other income helped offset some of the headwinds. The PAT margin stood at 15.1% for the company during 9M FY25. It expanded by 70 bps YoY, majorly due to higher profits owing to higher other income on account of the exceptional gain. Adjusting for the same, margins wouldโve been higher by 20 bps YoY at 14.6%.
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#ROCE
ROCE in FY24 stood at 31.13%. PBIT during the year stood at โน21,520 cr while the capital employed increased to โน76,020 cr.
ROCE in FY24 stood at 31.13%. PBIT during the year stood at โน21,520 cr while the capital employed increased to โน76,020 cr.
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#ROE
The metric during FY24 increased marginally to 23.69%. Net profit was โน15,710 cr, while net worth increased to โน68,263 cr, majorly due to higher share of retained earnings.
The metric during FY24 increased marginally to 23.69%. Net profit was โน15,710 cr, while net worth increased to โน68,263 cr, majorly due to higher share of retained earnings.
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#COMPANY POTENTIAL
โข Indian technologies services industry is forecasted to grow 10%-12% to reach $300-$350B revenues and share of digital in Indian technology services revenue is likely to be 55%-60% by 2025 with an annual growth of 25%-30%. (source: NASSCOM) โข The Indian IT service industry was $254 billion in FY24 and would grow to reach $350 billion by FY26. โข The average tech spending of global enterprises stood at 3% of their revenue which is expected to move to 5% of revenue by 2030. By FY26, ~51% of IT spending is expected to shift from traditional solutions to public cloud as compared to 41% in FY23. โข India is the topmost off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both onshore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market. โข Cloud technology is a priority for majority of the organizations, while cyber-security concerns are at the top of mind of CEOs. AI, Automation, data analytics, IoT and robotics will be the key drivers of the future tech stack. โข AI Market globally stood at $184 bn in 2024, according to Statista and is poised to grow to $827 bn by 2030, driven by increased push for automation and digital capabilities. โข Companies are actively exploring opportunities for digitization, leading to increased demand for consulting services. Digital technologies and next-generation technologies such as 5G, AI/ Intelligent Enterprise, robotics and blockchain, are anticipated to grow exponentially in the near future.
โข Indian technologies services industry is forecasted to grow 10%-12% to reach $300-$350B revenues and share of digital in Indian technology services revenue is likely to be 55%-60% by 2025 with an annual growth of 25%-30%. (source: NASSCOM) โข The Indian IT service industry was $254 billion in FY24 and would grow to reach $350 billion by FY26. โข The average tech spending of global enterprises stood at 3% of their revenue which is expected to move to 5% of revenue by 2030. By FY26, ~51% of IT spending is expected to shift from traditional solutions to public cloud as compared to 41% in FY23. โข India is the topmost off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both onshore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market. โข Cloud technology is a priority for majority of the organizations, while cyber-security concerns are at the top of mind of CEOs. AI, Automation, data analytics, IoT and robotics will be the key drivers of the future tech stack. โข AI Market globally stood at $184 bn in 2024, according to Statista and is poised to grow to $827 bn by 2030, driven by increased push for automation and digital capabilities. โข Companies are actively exploring opportunities for digitization, leading to increased demand for consulting services. Digital technologies and next-generation technologies such as 5G, AI/ Intelligent Enterprise, robotics and blockchain, are anticipated to grow exponentially in the near future.
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#Future #Plan
The industry is in the third wave of AI evolution. The first was driven by machine learning, the second by deep learning and the third by foundation models that will enable companies to further fine-tune the necessities of specialized domains and tasks. โข Blockchain global market stood at $20 billion in 2024 and is expected to grow to $250 billion by 2029. (Source: MarketsandMarkets) โข The overall emerging markets, especially Generative AI would reach $1.3 trillion by 2032 from $67 bn in 2023. (Source: Bloomberg) โข Digital engineering spends at enterprise level stood at $1,032 bn in 2024 and is expected to reach $1,654 bn by 2027, according to Zinnov. This spend is largely driven by investments focused on building digital infrastructure and development/re-engineering of products and services. Services-led verticals such as BFSI, Retail, Healthcare are increasing their consumption of technology spend to enable new products and services. โข According to a report by GrandView Research, in 2023, the worldwide digital transformation market was assessed to be $880 bn, and it is projected to experience a strong growth from 2024 to 2030, driven by growing adoption of cutting-edge technologies such as cyber security, Artificial Intelligence (AI), big data analytics, Business Intelligence (BI), and cloud.
The industry is in the third wave of AI evolution. The first was driven by machine learning, the second by deep learning and the third by foundation models that will enable companies to further fine-tune the necessities of specialized domains and tasks. โข Blockchain global market stood at $20 billion in 2024 and is expected to grow to $250 billion by 2029. (Source: MarketsandMarkets) โข The overall emerging markets, especially Generative AI would reach $1.3 trillion by 2032 from $67 bn in 2023. (Source: Bloomberg) โข Digital engineering spends at enterprise level stood at $1,032 bn in 2024 and is expected to reach $1,654 bn by 2027, according to Zinnov. This spend is largely driven by investments focused on building digital infrastructure and development/re-engineering of products and services. Services-led verticals such as BFSI, Retail, Healthcare are increasing their consumption of technology spend to enable new products and services. โข According to a report by GrandView Research, in 2023, the worldwide digital transformation market was assessed to be $880 bn, and it is projected to experience a strong growth from 2024 to 2030, driven by growing adoption of cutting-edge technologies such as cyber security, Artificial Intelligence (AI), big data analytics, Business Intelligence (BI), and cloud.
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#COMPANY #OUTLOOK
โข The company remains confident on achieving healthy growth on account of a strong deal pipeline that is well diversified across regions and verticals coupled with an improved spending environment. โข The company anticipates demand to uptick in the coming quarters with clients willing to upgrade, innovate and continue with their tech spend. Furthermore, growth in smaller deals gives confidence of increasing discretionary spending. โข For FY25, the companyโs revenue growth guidance was revised at 4.5%-5% YoY in cc terms, upgrading from 3.5%-5%, including the revenue from the acquisition of assets from HP Enterprises that completed in December. Further, their guidance for EBIT margins continues to be in the range of 18%-19%. Services revenue is now expected to grow in the range of 4.5%-5% YoY in cc terms for FY25. The previous guidance was 3.5%-5%. Excluding the inorganic contribution, the mid-point of the revenue guidance for FY25 stays the same at 4.25% in cc terms. โข They anticipate revenue growth run rate of Service segment during Q4 FY25 to be in the range of negative 1.3%-1% in cc terms. In Q4 FY25, the company has accounted for some planned contractual reductions in the telecom mega deal, absence of the successful delivery of projects that happened in Q3 FY25, and certain delays in deal conversion. โข Certain integration costs are anticipated to continue in the next quarter as well with a similar impact on margins of 20 bps. Their aspirational EBIT margin would be in the range of ~19%-20%, going ahead. โข Fresher hiring is expected to increase in FY26 to cater to the demand. Attrition in FY25 would stay in ranges of 13%-13.5%. โข Retail and Telecom verticals would be soft in the next couple of quarters due to the completion of the deal execution. โข Manufacturing, excluding auto has been performing well but the challenging environment in auto is expected to continue for a few quarters.
โข The company remains confident on achieving healthy growth on account of a strong deal pipeline that is well diversified across regions and verticals coupled with an improved spending environment. โข The company anticipates demand to uptick in the coming quarters with clients willing to upgrade, innovate and continue with their tech spend. Furthermore, growth in smaller deals gives confidence of increasing discretionary spending. โข For FY25, the companyโs revenue growth guidance was revised at 4.5%-5% YoY in cc terms, upgrading from 3.5%-5%, including the revenue from the acquisition of assets from HP Enterprises that completed in December. Further, their guidance for EBIT margins continues to be in the range of 18%-19%. Services revenue is now expected to grow in the range of 4.5%-5% YoY in cc terms for FY25. The previous guidance was 3.5%-5%. Excluding the inorganic contribution, the mid-point of the revenue guidance for FY25 stays the same at 4.25% in cc terms. โข They anticipate revenue growth run rate of Service segment during Q4 FY25 to be in the range of negative 1.3%-1% in cc terms. In Q4 FY25, the company has accounted for some planned contractual reductions in the telecom mega deal, absence of the successful delivery of projects that happened in Q3 FY25, and certain delays in deal conversion. โข Certain integration costs are anticipated to continue in the next quarter as well with a similar impact on margins of 20 bps. Their aspirational EBIT margin would be in the range of ~19%-20%, going ahead. โข Fresher hiring is expected to increase in FY26 to cater to the demand. Attrition in FY25 would stay in ranges of 13%-13.5%. โข Retail and Telecom verticals would be soft in the next couple of quarters due to the completion of the deal execution. โข Manufacturing, excluding auto has been performing well but the challenging environment in auto is expected to continue for a few quarters.
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HCL Technologies 1300-1430
Expected level 1700
Support 1200
Expected level 1700
Support 1200
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