HCL Tech: Margins under pressure - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

HCL Tech: Margins under pressure

Jan 22, 2002

HCL Technologies Ltd. that accounts for about 55% of the consolidated revenues of HCL Technologies and its subsidiaries has posted a 1% sequential growth in topline and a 7% decline in net profits for 2QFY02. The decline in net profits is due to operating margins falling and a lower other income figure. On a YoY basis, the revenues have declined by 4%, while the drop in bottomline is steeper at 12%. The operating margins have decline very sharply compared to 2QFY01. The figure has reduced from 52% as compared to 44% in 2QFY02.

(Rs m)1QFY022QFY02Change
Other Income 388 337 -13.1%
Operating Profit (EBDIT)854804-5.8%
Operating Profit Margin (%)48.0%44.9% 
Interest - -  
Depreciation 78 78 0.3%
Profit before Tax1,1641,063-8.7%
Tax 77 51 -33.5%
Profit after Tax/(Loss)1,0871,012-6.9%
Net profit margin (%)61.05%56.48% 
Diluted number of shares285.4285.4 
Diluted Earnings per share* 15.3 14.2 
P/E (x)   17.5  

At the current market price of Rs 248, the stock is trading at a P/E multiple of 18x its 2QFY02 estimated earnings. The results indicate that the tough market environment is taking a toll on the company’s financials. However, the markets track the company’s consolidated numbers, which are not available as yet. The expectations are based on the consolidated numbers. We will update the story as soon as we get the consolidated numbers.

Equitymaster requests your view! Post a comment on "HCL Tech: Margins under pressure". Click here!


More Views on News

HCL TECHNOLOGIES 2020-21 Annual Report Analysis (Annual Result Update)

Oct 20, 2021 | Updated on Oct 20, 2021

Here's an analysis of the annual report of HCL TECHNOLOGIES for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of HCL TECHNOLOGIES. Also includes updates on the valuation of HCL TECHNOLOGIES.

HCL TECHNOLOGIES Announces Quarterly Results (2QFY22); Net Profit Up 3.7% (Quarterly Result Update)

Oct 18, 2021 | Updated on Oct 18, 2021

For the quarter ended September 2021, HCL TECHNOLOGIES has posted a net profit of Rs 33 bn (up 3.7% YoY). Sales on the other hand came in at Rs 207 bn (up 11.1% YoY). Read on for a complete analysis of HCL TECHNOLOGIES's quarterly results.

HCL Technologies Slips 2% After June Quarter Results (Views On News)

Jul 20, 2021

The company's results have missed street estimates for the second consecutive quarter.

India's Top 4 IT Companies are Struggling. Here's Why... (Views On News)

Oct 22, 2021

As attrition rates are unbelievably high, top Indian IT companies are going for big-ticket raises, and much more hiring this year.

If You had Invested Rs 1 Lakh in TCS in 2011, this is how Much You Would have Today (Views On News)

Nov 30, 2021

Did TCS perform better than the market and its peers?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 6, 2021 03:17 PM


  • Track your investment in HCL TECHNOLOGIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks