Key Takeaways, Factors to Watch, and Implications for the IT Services Industry

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Key Takeaways, Factors to Watch, and Implications for the IT Services Industry

Key Takeaways

HSBC: 1.7% Q-o-Q in constant currency (CC)

0.2% Q-o-Q in CC

0.6% Q-o-Q in rupee terms

0.2% Q-o-Q in CC

HSBC: 17.7% Ebit margin

18.2% Ebit margin

19.3% Ebit margin

Ebit margin to decline 50 bps sequentially

Company guidance: Analysts expect guidance of 6-8% for FY25 due to a better exit rate for FY24.

Analysts will be looking for updates on the company's deal pipeline and outlook for growth, margins, and P&P business.

Analysts will be interested in the company's outlook on client discretionary spending in CY24.

Commentary on cost takeout projects will be closely watched.

Performance of the banking vertical will be a key factor to watch.

Attrition levels will be monitored.

Overall, analysts expect a muted Q4FY24 for HCL Tech due to a challenging global economic environment. However, the company's guidance and outlook for FY25 will be key factors to watch.