Fitch expects HCLTech’s revenue to grow by 8% in FY24-27, retains rating
Fitch also affirmed HCL’s senior unsecured rating at ‘A-‘, and the ‘A-‘ rating of the $252 million outstanding 1.375 per cent notes due in 2026, issued by HCL America Inc.
Credit-rating agency Fitch on Monday said it expects IT services firm HCLTech’s revenue to grow by 8 per cent in FY24-27 and retained the ‘A-‘ rating with a stable outlook.
Fitch attributed HCLTech’s solid market position, diversified customer base, no country ceiling constraint, and robust profitability as some of the key drivers that led the rating.
It has retained HCLTech’s Long-Term Foreign-and Local-Currency Issuer Default Ratings at ‘A-‘ with a stable outlook.
“The company is highly FCF generative and had a net cash position of around Rs 201 billion at end-December 2023. We expect HCL to generate steadily rising annual pre-dividend FCF in FY25-FY27, which should be sufficient to fund its shareholder returns and M&A ambitions,” Fitch said.
It further predicted the allocation of 75-80 per cent of net income as dividends or share buybacks.
Fitch also affirmed HCL’s senior unsecured rating at ‘A-‘, and the ‘A-‘ rating of the $252 million outstanding 1.375 per cent notes due in 2026, issued by HCL America Inc.
First Published: Apr 15 2024 | 9:52 PM IST