HCL Dividend: HCL Technologies Shares were trading lower on the BSE in Tuesday’s opening deals. The scrip was down over a per cent at Rs 890 per share as the IT stock started ex-dividend, a day ahead of its record date for interim dividend which it announced last week alongside its first quarter earnings for the current fiscal. HCL Tech’s board has declared an interim dividend of ₹10 per equity share having a face value of Rs 2 each for the financial year 2022-23 (FY23). The company had said that the record date has been fixed on Wednesday, July 20, 2022, for the payment of the aforesaid interim dividend and has been confirmed by the board of directors and the payment date of the said interim dividend shall be Tuesday, August 2, 2022. The ex-dividend date for a stock is generally a business day before the record date of declaring eligible shareholders for the payout.
The shall be paid to the equity shareholders whose names appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares as on Wednesday, July 20, 2022, which is the record date fixed for the purpose, the company said in a communication. This will be the second Interim dividend for the financial year 2022-23.
HCL Tech had paid a total dividend of Rs 42 per equity share for the fiscal FY22.
Headquartered in Noida, India, HCL Technologies is an Indian multinational IT services and consulting company. The IT stock is down about 33 per cent in 2022 (YTD) so far as compared to an 8 per cent fall in the benchmark Sensex.
Financials
HCL Technologies reported a net profit of Rs 3,283 crore, up 2.4 per cent year-on-year (YoY), but was down 8.6 per cent sequentially. Revenue for the quarter stood at Rs 23,646 crore, up 16.9 per cent YoY. The growth was 3.8 per cent sequentially.
In dollar terms, revenue grew 11.2 per cent YoY and 1.1 per cent sequentially. The company also maintained its FY23 revenue guidance at 12-14 per cent growth.
HCL Tech had a total contract value (TCV) of new deals worth $2 billion, a growth of 23.4 per cent YoY. “The TCV that we have signed is the highest ever and this also gives confidence for a strong note to start FY23 on. Our services business continues to have robust growth momentum, growing at 2.3 per cent quarter-on-quarter and 19 per cent YoY in constant currency. It was driven by our digital engineering and digital application services with Cloud adoption being a horizontal theme across all services and verticals,” said C Vijayakumar, chief executive officer (CEO) & managing director (MD), HCL Technologies.
Should you Invest in HCL Tech?
Major international brokerages have cut their EPS estimates for the IT major thanks to the pressure on the margin front. However, their estimates suggest an up to 45 per cent upside potential in the counter.
Morgan Stanley, which has a target price of Rs 1,300, is equal weight on the IT bluechip as it believes that earnings risk is likely to keep a check on the re-rating prospects of the company. “Consensus FY23 and FY24 margins are coming down, leading to cuts in the EPS estimate,” said the global brokerage firm.
Credit Suisse has maintained its outperform rating on HCL Technologies but slashed its EPS estimates for FY 23-25 by 8-14 per cent. It is pricing growth and margin headwinds for the stock. This brokerage has a target price of Rs 1,110 on the counter.
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