HCL Technologies shares tank over 4 pc on profit-booking after Q2 earnings

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HCL Technologies shares tank over 4 pc on profit-booking after Q2 earnings

Shares of HCL Technologies on Friday declined over 4 percent in early trade on the bourses on profit-booking after the company posted an 18.5 percent rise in September quarter net profit. The stock opened with gains on the BSE, but failed to carry the momentum further and tanked 4.47 percent to Rs 821 as the trade progressed.

At the NSE, it declined by 4.58 percent to Rs 820.60. IT firm HCL Technologies on Friday posted an 18.5 percent rise in September quarter net profit at Rs 3,142 crore. The IT major had registered a net profit of Rs 2,651 crore in the July-September 2019 quarter (as per US GAAP), HCL Technologies said in a regulatory filing.

Its revenue grew 6.1 percent to Rs 18,594 crore in the quarter under review, from Rs 17,528 crore in the corresponding quarter last year. On a sequential basis, net profit was 7.4 percent higher from Rs 2,925 crore, while the top line was higher by 4.2 percent from Rs 17,841 crore in June 2020 quarter.

In the second quarter, HCL Technologies recorded revenue growth at 4.5 percent quarter-on-quarter in constant currency – higher than its estimate of 1.5-2.5 percent sequential rise. HCL Technologies has maintained its revenue growth guidance of an average of 1.5-2.5 percent increase quarter-on-quarter in constant currency for the third and fourth quarter.

“We have delivered a stellar Q2 performance with sequential revenue growth of 4.5 percent in constant currency and 21.6 percent EBIT margin,” HCL Technologies President and CEO C Vijayakumar said.

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