InCred Equities - HCL Technologies

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	1,099,130	1,166,479	1,275,387	1,414,080
Operating EBITDA (Rsm)	242,000	254,824	283,391	317,319
Net Profit (Rsm)	157,020	173,280	189,407	213,771
Core EPS (Rs)	58.0	64.0	69.9	78.9
Core EPS Growth	5.8%	10.3%	9.3%	12.9%
FD Core P/E (x)	31.40	28.45	26.03	23.06
DPS (Rs)	52.0	58.0	66.4	75.0
Dividend Yield	2.86%	3.19%	3.65%	4.12%
EV/EBITDA (x)	19.44	18.34	16.41	14.58
P/FCFE (x)	23.20	28.68	26.25	23.60
Net Gearing	(33.0%)	(36.9%)	(39.6%)	(42.1%)
P/BV (x)	7.22	7.06	6.96	6.86
ROE	23.5%	25.1%	26.9%	30.0%
% 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	1,166,479	1,275,387	1,414,080
Gross Profit	377,880	392,119	433,632	482,908
Operating EBITDA	242,000	254,824	283,391	317,319
Depreciation And Amortisation	(41,730)	(40,890)	(44,639)	(48,079)
Operating EBIT	200,270	213,934	238,752	269,241
Financial Income/(Expense)	9,420	17,204	13,763	15,002
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	(20)	1,139	1,148	1,273
Profit Before Tax (pre-EI)	209,670	232,277	253,664	285,516
Exceptional Items
Pre-tax Profit	209,670	232,277	253,664	285,516
Taxation	(52,570)	(58,917)	(64,177)	(71,664)
Exceptional Income - post-tax
Profit After Tax	157,100	173,360	189,487	213,851
Minority Interests	(80)	(80)	(80)	(80)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	157,020	173,280	189,407	213,771
Recurring Net Profit	157,020	173,280	189,407	213,771
Fully Diluted Recurring Net Profit	157,020	173,280	189,407	213,771

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	242,000	254,824	283,391	317,319
Cash Flow from Invt. & Assoc.
Change In Working Capital	23,050	(12,052)	(19,488)	(24,818)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	80	80	80	80
Other Operating Cashflow
Net Interest (Paid)/Received
Tax Paid	(42,120)	(58,917)	(64,177)	(71,664)
Cashflow From Operations	223,010	183,935	199,806	220,917
Capex	(10,480)	(12,000)	(12,000)	(12,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	(56,750)	17,204	13,763	15,002
Cash Flow From Investing	(67,230)	5,204	1,763	3,002
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(140,730)	(157,264)	(179,936)	(203,083)
Preferred Dividends
Other Financing Cashflow	(13,910)
Cash Flow From Financing	(154,640)	(157,264)	(179,936)	(203,083)
Total Cash Generated	1,140	31,876	21,633	20,837
Free Cashflow To Equity	212,530	171,935	187,806	208,917
Free Cashflow To Firm	155,780	189,140	201,569	223,919

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	271,930	304,785	327,406	349,355
Total Debtors	255,210	270,848	296,136	328,339
Inventories	1,850	1,850	1,850	1,850
Total Other Current Assets	64,320	64,320	64,320	64,320
Total Current Assets	593,310	641,803	689,711	743,864
Fixed Assets	150,390	121,500	88,862	52,783
Total Investments	23,500	23,500	23,500	23,500
Intangible Assets	201,320	201,320	201,320	201,320
Total Other Non-Current Assets	29,250	29,250	29,250	29,250
Total Non-current Assets	404,460	375,570	342,932	306,853
Short-term Debt	1,040	1,040	1,040	1,040
Current Portion of Long-Term Debt
Total Creditors	58,530	62,116	67,916	75,301
Other Current Liabilities	167,690	167,690	167,690	167,690
Total Current Liabilities	227,260	230,846	236,646	244,031
Total Long-term Debt	22,230	22,230	22,230	22,230
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	65,570	65,570	65,570	65,570
Total Non-current Liabilities	87,800	87,800	87,800	87,800
Total Provisions
Total Liabilities	315,060	318,646	324,446	331,831
Shareholders Equity	682,710	698,727	708,197	718,886
Minority Interests
Total Equity	682,710	698,727	708,197	718,886

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	8.3%	6.1%	9.3%	10.9%
Operating EBITDA Growth	6.9%	5.3%	11.2%	12.0%
Operating EBITDA Margin	22.0%	21.8%	22.2%	22.4%
Net Cash Per Share (Rs)	83.18	95.31	103.67	111.77
BVPS (Rs)	252.09	258.01	261.50	265.45
Gross Interest Cover
Effective Tax Rate	25.1%	25.4%	25.3%	25.1%
Net Dividend Payout Ratio	89.7%	90.8%	95.0%	95.0%
Accounts Receivables Days	84.73	82.30	81.13	80.59
Inventory Days	1.05	0.87	0.80	0.73
Accounts Payables Days	31.07	28.43	28.19	28.07
ROIC (%)	30.0%	33.5%	38.8%	45.2%
ROCE (%)	21.1%	21.7%	23.8%	26.5%
Return On Average Assets	15.5%	15.9%	17.5%	19.5%

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

(91) 02241611554 smit.gosrani@incredresearch.com

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Market Data

Source: Bloomberg