PINC Research has maintained its hold rating on HCL Technologies with price target of Rs 100 in its April 23, 2009 research report.
“HCL Technologies managed to win USD 1.5 billion deals in FY09 when compared to USD 1 billion for FY08. The deals of FY08 will contribute about USD 188 million in revenue in FY09 and FY09 deal flow would contribute USD 45 mn this year.”Despite the decent quarter the bottom-line was eroded by Forex loss. HCL Tech has realized a Forex loss of Rs 76 crore and cash flow hedge loss of Rs 1.3 billion. It has total hedges of USD 1.3 billion and cash flow loss of USD 225 million to be amortized in the next 6 quarters. We believe HCL Tech would not get any near-term respite from Forex loss and debt schedule. We reiterate our ‘Hold’ rating with a price target of Rs 100,” says PINC’s research report.
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