Nifty IT crashes 1% ahead of HCL Tech Q4 numbers, all stocks in red

at the time of writing, nifty it The index traded down 299.55 points or 1.10% at 26,867.40. The index touched a low of 26,818.60.

Coforge led the way in the top bear basket with a decline of 2.3%, followed by LTIM stock which fell by 2.10%. HCL Tech and Infosys fell 1.7% and 1.5%.

Stocks such as Wipro, L&T Technology Services, Tech Mahindra, Mphasis and TCS slipped between 0.6% to 1%. Persistent Systems was down marginally.

HCL Tech peers TCS and Infosys have announced their Q4 prints and both the tech giants have missed street estimates, raising concerns about near-term challenges.

“After disappointing Q4 results from TCS and Infosys last week, we expect the trend to continue when HCL Technologies releases its report on Thursday,” said Manish Chowdhary, head of research at Stocksbox.

“We expect a low single-digit sequential decline in revenue in CC terms, along with some erosion in margins in a seasonally weak quarter,” Chowdhury said.

The IT heavyweight’s poor commentary last week has certainly raised the risk of macro headwinds impacting the demand outlook and pricing scenario in the IT sector, feels a Stoxbox expert who expects a sluggish and more comprehensive FY24 from HCL Revenue and margin should also be reflected in the guidance. Take.

“Apart from the known template currently playing out, we will also see signs of demand revival/stabilisation in the year ahead with management’s expectations,” he added.

On April 20, HCL Tech will announce Q4 and overall FY23 earnings. Along with this, the board of the company will also consider and recommend an interim dividend for the financial year 2023-24. The company set April 28 as the record date to determine the shareholders eligible for the dividend benefit.

Read HCL Tech Q4 Preview Here!

In its preview report for HCL Tech, Axis Securities said, “We expect revenue to grow 1.3% Q-o-Q on the backdrop of delayed decision-making.” It added that the company’s margins are likely to expand, aided by easing supply-side constraints and a favorable currency mix. The BFSI impact following the banking crisis, and the vertical commentary going forward, are key watchwords.

The key factors to watch in HCL Tech Q4 are – a) deal TCV/deal pipeline, b) pricing scenario, and c) outlook on growth, operating margin and P&P of the business.

Brokerage expects HCL Tech Q4 revenue 26,553 crore up 17.5% YoY but down 0.6% sequentially. EBITDA was impacted 4,928 crore up 21.1% YoY but down 5.7% QoQ. Ebitda margin is expected to shrink in the fourth quarter to around 18.6%. PAT is estimated 3,830 crore 6.3% YoY in Q4, however, a decline of 6.5%.

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