HCLTech to announce Q3 results today: What to expect from the IT giant
Summary
Investors will be closely watching the IT giant’s performance, especially after Tata Consultancy Services (TCS) posted its Q3 FY25 results last week. Market analysts predict that HCLTech will show robust growth in the December quarter, driven by its software business and recent acquisition of the Communications Technology Group (CTG). Deal wins for the quarter are likely to range between $2-2.5 billion, and some analysts believe HCLTech may upgrade its FY25 revenue guidance. Analysts at JM Financial have factored in a $20 million contribution from the CTG consolidation and expect quarter-on-quarter growth of 1.5% in IT services, engineering and R&D (ERS), and product and platform businesses. Margins are likely to expand by 50 basis points (bps) sequentially, driven by a strong performance in the software business and operating leverage, despite headwinds from wage hikes and furloughs.