“HCLT’s results were lower than expectations. The CC revenue growth of 1.2% came in below estimates and was lower than the growth reported by Infosys and TCS. IMS, the growth driver for HCLT revenues, reported a 0.9% growth in CC terms. We maintain that, the competition in IMS market is set to intensify with several players now focusing more on this segment. The margins reflect profitability challenges faced by HCLT in a bid to sustain high growth. We have been cautious on the profitability levels of HCLT. We will watch out for the improvement in growth rates in future quarters.”
By:-Dipen Shah, Head of Private Client Group Research, Kotak Securities
By:-Dipen Shah, Head of Private Client Group Research, Kotak Securities
