“HCLT’s results were marginally above our estimates. The 3.8% CC growth was encouraging. The company has been able to consistently demonstrate steady revenue growth and the margins have also remained at higher levels over the past four quarters. However, we believe that, there are margin headwinds and the company will have to achieve further productivity improvements in order to protect margins. The company’s focus on the re-bid market continues to provide good visibility with $1bn of order wins during the quarter and a 40% higher funnel YoY.”
