“HCL has really outperformed on the vertical side as well on the geography side,” says Mitul Shah, Head of Research, Securities.
Given this big beat, is it worth it to increase the estimates on ? Will there be upgrades tomorrow morning you think?
Yes, certainly there will be an upgrade tomorrow because not only was the revenue guidance increased, the margin guidance was reduced but 18% coming in this quarter is really commendable and the Street estimate was somewhere around 17.3-17.4%. So there is a clear beat on the margins front.
Given this big beat, is it worth it to increase the estimates on ? Will there be upgrades tomorrow morning you think?
Yes, certainly there will be an upgrade tomorrow because not only was the revenue guidance increased, the margin guidance was reduced but 18% coming in this quarter is really commendable and the Street estimate was somewhere around 17.3-17.4%. So there is a clear beat on the margins front.
In addition to this, there is an employee addition of 8,359 which is giving more confidence that going forward there would be higher deal wins and this upgrade on the revenue will be primarily on the back of strong deal wins which is up by 16% quarter-on-quarter and 6% year-on-year, 2.384 million which is really great.
Geography wise, growth is coming in from the Europe side compared to America, Europe growth is higher than growth from America whereas everyone is feeling that Europe and UK is slowing down but this is not visible in HCL’s numbers.
Even within verticals also, manufacturing growth is coming at 10% quarter-on-quarter which is really commendable because as we all know, overall there is a slowdown particularly on the manufacturing side globally but HCL has really outperformed on the vertical side as well on the geography side.
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