Sensex Today | Stock Market View: Dhruv Mudaraddi, Research Analyst, StoxBox

HCL Tech Ltd.'s Q2FY24 performance is marked by steady growth, with a 3.4% YoY and 1.0% QoQ revenue increase in constant currency. The company has demonstrated impressive operational efficiency, evidenced by a substantial 154 bps sequential improvement in EBIT margin accompanied by robust cash generation. The Financial Services, Life Sciences & Healthcare, and Retail verticals have demonstrated robust growth, while Manufacturing, Technology & Services, and Telecommunication sectors encountered performance challenges. Notably, the achievement of securing a new all-time high in bookings totaling $3.9 billion, including a standout mega deal with Verizon, reflects HCL Tech's exceptional market responsiveness. The company's growth outlook appears promising, underpinned by its commitment to innovation and expansion into high-growth segments, notably Engineering and R&D services (up 5% QoQ). HCL Tech's strategic partnerships and its proactive expansion into new markets are poised to drive future growth. Furthermore, its focus on streamlining operations and cost-reduction strategies bodes well for healthy margins. The management commentary on the margin profile of the Verizon deal, the ramp up of mega wins, recovery in demand for discretionary services and demand trends around ERD space would be closely watched for further cues.