Analysis of Q1 2024 Results: HCL Technologies vs TCS

Indian IT majors, HCL Technologies and TCS, have set the stage for a tough decision for investors as they unveiled their strong Q1 results for 2024. With TCS shares moving upward after their results announcement and HCL Tech impressing with their own results, the Indian stock market is expected to see some interesting movements on Monday.

According to Siddhesh Mehta, a Research Analyst at SAMCO Securities, the Nifty IT index surged after TCS’s robust performance and is expected to continue this upward trend with the impressive results from HCL Tech. Both companies showed significant year-on-year growth in revenues and profits, indicating a positive outlook for the Indian IT sector.

While TCS exceeded market estimates with strong revenue growth and net profit, HCL Tech also reported better-than-expected results. However, concerns about HCL Tech’s growth in FY25 remain, with some analysts pointing out one-time gains that could impact future earnings.

Despite these concerns, HCL Tech reported a 20.4% YoY increase in consolidated PAT and declared an interim dividend, showcasing a positive growth trajectory. On the other hand, TCS maintained its revenue growth and strong outlook for FY25, making it a more attractive option for investors according to Avinash Gorakshkar of Profitmart Securities.

As the Indian IT sector gears up for another significant day on Monday, investors will be closely monitoring the stock movements of both HCL Technologies and TCS to make informed decisions in the market. It remains to be seen how the market reacts to these strong Q1 results and which IT stock emerges as the preferred choice for investors.