Q1 results today: HCL Tech, IREDA among 14 companies announce earnings on Friday

IT services company TCS has kickstarted the first quarter earnings season with positive results, indicating an improvement in the business environment. Today, another IT company, HCL Tech, will announce its earnings for the quarter ended June, along with 13 other companies.

Other earnings to watch out for are 5paisa Capital, Atharv Enterprises, Betala Global Securities, Gautam Gems, Golkonda Aluminum, Indo Cotspin, Infomedia Press, IREDA, and Oriental Hotels, among others.

HCL Tech Q1 expectations

HCL Tech is expected to report a 6% year-on-year (YoY) jump in its net profit for the quarter ended June 2024 at Rs 3,745 crore, according to average estimates of four brokerages.

The revenue is expected at Rs 27,997 crore in the reported quarter, which will be a growth of 6.5% over the corresponding quarter of the last financial year.

While the company is expected to post a YoY growth in PAT, sequentially it may decline due to project run-offs and softening in discretionary spending. The IT and business services segment is expected to take a hit on the QoQ hit.

Kotak Equities expects a 5.6% YoY jump in the June quarter net profit at Rs 3,733 crore, while a 6.3% decline on a QoQ basis. Net sales for the reporting quarter are seen at Rs 27,998 crore, up by 6% YoY, while down by 1.8% on a QoQ basis.

EBITDA in the first quarter is estimated to go up by 9% YoY at Rs 5,755 crore. On a QoQ basis, a 5.7% decline in the same is expected.

"We expect a 2% revenue decline due to the impact of usual productivity gains in annuity deals and the additional impact of offshoring of a large deal that ramped up from March 2023. We forecast a decline of 2.3% QoQ in IT and Business Services and 2.7% in products. A decline in revenues will have a corresponding impact on EBIT margins. We forecast 70 bps QoQ and 10 bps yoy decline in EBIT margins," Kotak said in a note.