HCL Tech To Declare Dividend Along With Q4 Results on Thursday; Key Details For Investors

HCL Tech Dividend: IT major HCL Technologies will consider an interim dividend payout to the equity shareholders along with its Q4 earnings on Thursday. The company will also declare final dividend for FY23, if any.

Following its quarterly results, the senior management of HCL Technologies will conduct audio conference call at 7 p.m. (IST) for 60 minutes to discuss the results, followed by the detailed question-answer session.

Dividend History

HCL Technologies has declared 85 dividends since 25 September, 2000. In the past 12 months, HCL Technologies has declared an equity dividend amounting to Rs 48.00 per share, according to Trendlyne data.

At the current share price of Rs 1046.20, this results in a dividend yield of 4.59 per cent.

HCL Tech Q4 Results – What to Expect?

HCL Tech is expected to report a double-digit growth in revenue for the fourth quarter ended March 31, 2023, with estimates going as high as around 20.4 per cent, aided by ramp up of deals, well distributed across large and medium sized deals. “The deal pipeline remains healthy, which is well distributed across large and medium sized deals. Deal signing has seen some moderation, especially in the Europe region where conversion of deals from pipeline to TCV may see some delay for the next couple of quarters. The US region is expected to do well on steady deal momentum,” said ICICI Securities.

Motilal Oswal said HCL Tech is one of the key beneficiaries of Cloud adoption at scale, given its expertise in IMS. That said, the IT firm’s Q4 results are expected to impacted by software business seasonality.

HCL Tech is expected to report a 20.3 per cent YoY (1.8 per cent QoQ) rise in revenue at Rs 27,180 crore. Adjusted profit is seen rising 9.6 per cent YoY to Rs 3,940 crore. Sequential dollar revenue growth is seen at 1.5 per cent while CC revenue growth is seen at 0.5 per cent.

“We expect HCL Tech to report muted growth due to a seasonal drag in HCL Software,” the brokerage said, adding that growth in IT Services to remain strong. Margins are seen decline 150 bps QoQ for HCL Tech, largely due to a seasonal decline in HCL Software.

What to watch from HCL Tech Q4FY23 results?

What will be the key things to look out for as HCL Tech announces its quarter results? Kotak Institutional Equities said, “We expect investor focus on: 1) revenue growth guidance for FY2024 and whether growth can be among industry leaders, 2) impact on discretionary businesses, i.e., products and ERS in the event of recession, 3) exposure to impacted verticals/clients and when revenue will bottom out in these segments, 4) outlook on revenue growth in Europe, 5) levers to increase margins to normalized band, 6) large-deal activity in the market, especially noting HCLT’s higher dependence on large deals for growth, and 7) changes to hiring plans in FY2024 in a deteriorating macro environment.”

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