Greyhound Research’s Perspective on HCL Q1 Results
HCL’s performance has exceeded the market expectations. It’s showing signs of healthy growth but not industry leading as yet. This quarter too, HCL has posed with profit of 3.2% Q-o-Q. While HCL is continuously striving to create a strong foothold in the digital space, Greyhound Research is of the opinion that it’s best if HCL focuses on services and verticals which haven’t been generating profits for the company. Traditionally weak on the application services, the investor community is looking at improving account management and since it draws better margins in application services. The company holds a strong foothold in infrastructure management which has been generating a steady stream of revenue for the company. It’s great to see that HCL is investing heavily into IoT in the emerging markets but the market hasn’t matured, so the revenues are going to be near negligible. In the current scenario, HCL’s projects are way too ambitious like the power driverless cars. The utilization rate at 82. 7% is a healthy rate as per industry standards. Attrition is likely to increase at HCL this quarter.
