Preview: HCL Technologies Q1 net profit seen down 8% at Rs 783 crore

HCL Technologies Ltd is slated to come out with its first quarter results on Wednesday. India's fourth largest software services exporter is expected to report a 8.3 per cent sequential fall in its net profits for the quarter ended September 30 to Rs 783 core from Rs 854 crore reported in the previous quarter, according to ET NOW estimates.

EBITDA is seen at Rs 1,213 crore, or a 6.75 per cent QoQ fall compared to Rs 1300.80 crore in the previous quarter. However, dollar revenues are expected to come at $1116 million, up 3.37 per cent as compared to $1079.60 million reported in the previous quarter.

EBITDA margins are expected to contract to 19.8 per cent as compared to 21.97 per cent reported in the previous quarter. Revenues are expected to increase by 3.49 per cent to Rs 6126 crore from Rs 5919 crore reported in the previous quarter.

KimEng: Expect Q1 EPS of Rs10.3, -15.8% QoQ, +44.4% YoY

We expect revenue growth of 3.4 per cent driven by volume growth. We expect EBITDA margin to decline by 300 bps QoQ due to salary hike and higher sales and marketing costs.

Due of forex loss (Rs0.9bn) we expect EPS to decline by 15.8 per cent QoQ. We expect FY13 EPS growth of 25 per cent YoY and maintain ‘buy’ with target price of Rs 650.