HCL Technologies will release its fourth-quarter earnings on Thursday.
HCL Technologies will release its fourth-quarter earnings on Thursday and the analysts are expecting good numbers from the IT firm on the back of strong deal wins.So far in 2019 HCL Tech has outperformed the Nifty IT on the back of strong deal wins announced by the company and expectation of meaningful growth improvement for the company in FY20 vis-à-vis FY19.The street is expecting a dollar revenue growth of 2.6 percent. In constant currency terms, it should be a growth of 2.2-2.3 percent.The deal wins have been strong for the company till the month of December. In the first nine months of FY19, the company reported 40 percent improvement in their deal wins and even in the March quarter they have announced the big Xerox deal which was worth $1.3 billion. All that will power the topline growth.As they ramp up this large deal wins, the company makes investments which could put pressure on their margins coupled with the rupee appreciation. So EBIT margins could be slightly lower on a quarter-on-quarter basis which could put the profits also lower.