HCL Tech has reported a very good set of numbers: Sandip Agarwal, Edelweiss Financial Services

In a chat with ET Now, Sandip Agarwal of Edelweiss Financial Services shares his views on HCL Tech’s Q2 earnings. Excerpts:

ET Now: A big thumbs up to HCL Technologies this quarter?

Sandip Agarwal: Definitely, it is a very good set of number. It has been an amazing quarter and if you see, verticals also have shown amazing performance. Manufacturing, life sciences, healthcare -- all verticals have done well barring financial services and telecom.

So in telecom obviously we are not very bullish because recovery has just started. The kind of growth in retail at 8% is really surprising, given the number of holidays and all the issues which were there in the quarter.

ET Now: What can we expect from HCL Technologies?

Sandip Agarwal: The reaction should be on the positive side. This is definitely a clear sign that demand recovery in the sector is extremely strong, and life sciences and healthcare have come back strongly. This is something which is now consistent with all four players talking positive about the demand environment and vertical recoveries.

Only sector where there is some overhang is energy vertical because of the oil price cash. So we have to see what kind of impact this vertical has on the large cap IT players, but I do not any significant impact because energy vertical contributes anywhere between 8% and 15% among different players. So even if it remains muted, the other verticals’ growth should be able to compensate for it.