InCred Equities - HCL Technologies

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	1,170,550	1,248,621	1,355,816	1,443,944
Operating EBITDA (Rsm)	255,050	262,947	292,992	312,903
Net Profit (Rsm)	173,910	174,601	197,594	211,281
Core EPS (Rs)	64.2	64.5	73.0	78.0
Core EPS Growth	10.7%	0.4%	13.2%	6.9%
FD Core P/E (x)	22.85	22.76	20.11	18.81
DPS (Rs)	60.0	60.0	69.3	74.1
Dividend Yield	4.09%	4.09%	4.72%	5.05%
EV/EBITDA (x)	14.64	14.09	12.55	11.64
P/FCFE (x)	18.78	22.19	20.01	18.30
Net Gearing	(34.2%)	(38.1%)	(41.3%)	(45.3%)
P/BV (x)	5.70	5.61	5.53	5.45
ROE	25.2%	24.8%	27.7%	29.2%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	1,170,550	1,248,621	1,355,816	1,443,944
Gross Profit	392,400	410,830	451,758	481,988
Operating EBITDA	255,050	262,947	292,992	312,903
Depreciation And Amortisation	(40,840)	(43,537)	(46,098)	(49,094)
Operating EBIT	214,210	219,410	246,894	263,808
Financial Income/(Expense)	17,550	14,896	16,102	17,407
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	860	404	1,220	1,300
Profit Before Tax (pre-EI)	232,620	234,710	264,217	282,515
Exceptional Items
Pre-tax Profit	232,620	234,710	264,217	282,515
Taxation	(58,620)	(60,069)	(66,583)	(71,194)
Exceptional Income - post-tax
Profit After Tax	174,000	174,641	197,634	211,321
Minority Interests	(90)	(40)	(40)	(40)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	173,910	174,601	197,594	211,281
Recurring Net Profit	173,910	174,601	197,594	211,281
Fully Diluted Recurring Net Profit	173,910	174,601	197,594	211,281

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	255,050	262,947	292,992	312,903
Cash Flow from Invt. & Assoc.
Change In Working Capital	10,100	(13,084)	(17,964)	(14,769)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	90	40	40	40
Other Operating Cashflow	(200)	324	1,140	1,220
Net Interest (Paid)/Received
Tax Paid	(42,430)	(60,069)	(66,583)	(71,194)
Cashflow From Operations	222,610	190,158	209,625	228,199
Capex	(11,080)	(11,080)	(11,080)	(11,080)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(38,060)	14,896	16,102	17,407
Cash Flow From Investing	(49,140)	3,816	5,022	6,327
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(162,500)	(162,609)	(187,714)	(200,717)
Preferred Dividends
Other Financing Cashflow	(23,110)
Cash Flow From Financing	(185,610)	(162,609)	(187,714)	(200,717)
Total Cash Generated	(12,140)	31,365	26,933	33,809
Free Cashflow To Equity	211,530	179,078	198,545	217,119
Free Cashflow To Firm	173,470	193,974	214,647	234,526

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	287,620	318,985	345,918	379,727
Total Debtors	258,420	275,656	299,321	318,777
Inventories	1,330	1,330	1,330	1,330
Total Other Current Assets	73,720	73,720	73,720	73,720
Total Current Assets	621,090	669,690	720,288	773,553
Fixed Assets	144,750	112,293	77,275	39,261
Total Investments	39,110	39,110	39,110	39,110
Intangible Assets	217,560	217,560	217,560	217,560
Total Other Non-Current Assets	32,930	32,930	32,930	32,930
Total Non-current Assets	434,350	401,893	366,875	328,861
Short-term Debt	22,210	22,210	22,210	22,210
Current Portion of Long-Term Debt
Total Creditors	62,250	66,402	72,102	76,789
Other Current Liabilities	195,930	195,930	195,930	195,930
Total Current Liabilities	280,390	284,542	290,242	294,929
Total Long-term Debt	700	700	700	700
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	77,620	77,620	77,620	77,620
Total Non-current Liabilities	78,320	78,320	78,320	78,320
Total Provisions
Total Liabilities	358,710	362,862	368,562	373,249
Shareholders Equity	696,730	708,721	718,601	729,165
Minority Interests
Total Equity	696,730	708,721	718,601	729,165

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	6.5%	6.7%	8.6%	6.5%
Operating EBITDA Growth	5.4%	3.1%	11.4%	6.8%
Operating EBITDA Margin	21.8%	21.1%	21.6%	21.7%
Net Cash Per Share (Rs)	88.00	99.59	109.53	122.02
BVPS (Rs)	257.27	261.70	265.35	269.25
Gross Interest Cover
Effective Tax Rate	25.2%	25.6%	25.2%	25.2%
Net Dividend Payout Ratio	93.5%	93.1%	95.0%	95.0%
Accounts Receivables Days	80.08	78.06	77.39	78.12
Inventory Days	0.75	0.58	0.54	0.50
Accounts Payables Days	28.33	28.02	27.96	28.25
ROIC (%)	33.7%	34.7%	40.9%	45.5%
ROCE (%)	21.7%	21.7%	24.2%	25.5%
Return On Average Assets	15.7%	15.4%	17.2%	18.1%

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

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Market Data

Source: Bloomberg