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HCL Tech Ltd. delivered a strong revenue growth of 3.8% QoQ constant currency in Q2 FY23 (100 basis points above our estimates), led by IT services and engineering research and development verticals.
Overall services grew 5.3% in CC terms and it reported robust new deal total contract value of $2.4 billion (up 16% QoQ/up 6% YoY).
HCL Tech increased its revenue guidance to 13.5- 14.5% in CC terms from 12-14% earlier, which was a surprise, given the weakening macro environment.
Further, it delivered a strong beat in Ebit margin at 18.0% (up 100 bp QoQ, 70 bps above our estimate) with IT services up 100 bps QoQ, ER&D up 270 bps QoQ, while products and platform down 220 bp QoQ.
HCLT revised its Ebit margin guidance to 18- 19% from 18-20%.
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