InCred Equities - HCL Technologies

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	1,099,130	1,170,550	1,235,879	1,335,947
Operating EBITDA (Rsm)	242,000	255,050	272,141	300,455
Net Profit (Rsm)	157,020	173,910	183,106	204,393
Core EPS (Rs)	58.0	64.2	67.6	75.5
Core EPS Growth	5.8%	10.7%	5.3%	11.6%
FD Core P/E (x)	28.24	25.50	24.22	21.70
DPS (Rs)	52.0	60.0	64.2	71.7
Dividend Yield	3.18%	3.67%	3.92%	4.38%
EV/EBITDA (x)	17.39	16.45	15.31	13.77
P/FCFE (x)	20.87	20.95	23.53	21.68
Net Gearing	(33.0%)	(34.2%)	(38.1%)	(41.4%)
P/BV (x)	6.50	6.37	6.28	6.19
ROE	23.5%	25.2%	26.1%	28.7%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	1,099,130	1,170,550	1,235,879	1,335,947
Gross Profit	377,880	392,400	417,727	456,894
Operating EBITDA	242,000	255,050	272,141	300,455
Depreciation And Amortisation	(41,730)	(40,840)	(43,256)	(45,422)
Operating EBIT	200,270	214,210	228,885	255,032
Financial Income/(Expense)	9,420	17,550	14,918	16,409
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	(20)	860	1,112	1,202
Profit Before Tax (pre-EI)	209,670	232,620	244,915	272,644
Exceptional Items
Pre-tax Profit	209,670	232,620	244,915	272,644
Taxation	(52,570)	(58,620)	(61,718)	(68,161)
Exceptional Income - post-tax
Profit After Tax	157,100	174,000	183,196	204,483
Minority Interests	(80)	(90)	(90)	(90)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	157,020	173,910	183,106	204,393
Recurring Net Profit	157,020	173,910	183,106	204,393
Fully Diluted Recurring Net Profit	157,020	173,910	183,106	204,393

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	242,000	255,050	272,141	300,455
Cash Flow from Invt. & Assoc.
Change In Working Capital	23,050	10,100	(10,948)	(16,770)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	80	90	90	90
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(42,120)	(42,430)	(61,718)	(68,161)
Cashflow From Operations	223,010	222,810	199,564	215,613
Capex	(10,480)	(11,080)	(11,080)	(11,080)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(56,750)	(38,060)	14,918	16,409
Cash Flow From Investing	(67,230)	(49,140)	3,838	5,329
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(140,730)	(162,500)	(173,951)	(194,173)
Preferred Dividends
Other Financing Cashflow	(13,910)	(23,110)
Cash Flow From Financing	(154,640)	(185,610)	(173,951)	(194,173)
Total Cash Generated	1,140	(11,940)	29,450	26,769
Free Cashflow To Equity	212,530	211,730	188,484	204,533
Free Cashflow To Firm	155,780	173,670	203,401	220,943

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	271,930	287,620	318,003	345,794
Total Debtors	255,210	258,420	272,843	294,934
Inventories	1,850	1,330	1,330	1,330
Total Other Current Assets	64,320	73,720	73,720	73,720
Total Current Assets	593,310	621,090	665,895	715,779
Fixed Assets	150,390	144,750	112,574	78,232
Total Investments	23,500	39,110	39,110	39,110
Intangible Assets	201,320	217,560	217,560	217,560
Total Other Non-Current Assets	29,250	32,930	32,930	32,930
Total Non-current Assets	404,460	434,350	402,174	367,832
Short-term Debt	1,040	22,210	22,210	22,210
Current Portion of Long-Term Debt
Total Creditors	58,530	62,250	65,724	71,046
Other Current Liabilities	167,690	195,930	195,930	195,930
Total Current Liabilities	227,260	280,390	283,864	289,186
Total Long-term Debt	22,230	700	700	700
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	65,570	77,620	77,620	77,620
Total Non-current Liabilities	87,800	78,320	78,320	78,320
Total Provisions
Total Liabilities	315,060	358,710	362,184	367,506
Shareholders Equity	682,710	696,730	705,885	716,105
Minority Interests
Total Equity	682,710	696,730	705,885	716,105

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	8.3%	6.5%	5.6%	8.1%
Operating EBITDA Growth	6.9%	5.4%	6.7%	10.4%
Operating EBITDA Margin	22.0%	21.8%	22.0%	22.5%
Net Cash Per Share (Rs)	83.18	88.00	99.22	109.49
BVPS (Rs)	252.09	257.27	260.65	264.42
Gross Interest Cover
Effective Tax Rate	25.1%	25.2%	25.2%	25.0%
Net Dividend Payout Ratio	89.7%	93.5%	95.0%	95.0%
Accounts Receivables Days	84.73	80.08	78.45	77.56
Inventory Days	1.05	0.75	0.59	0.55
Accounts Payables Days	31.07	28.33	28.55	28.39
ROIC (%)	30.0%	33.7%	36.4%	42.6%
ROCE (%)	21.1%	21.7%	22.8%	25.2%
Return On Average Assets	15.5%	15.7%	16.2%	17.9%

(91) 22 4161 1543 abhishek.shindadkr@incredresearch.com

(91) 22 4161 1544 vikas.swami@incredresearch.com

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Market Data

Source: Bloomberg