HCL Technologies shares drop over 4% after Q2 earnings
Shares of HCL Technologies fell more than 4% in early trade on Friday on profit-booking after the company posted 18.5% rise in September quarter net profit at Rs 3,142 crore. On the S&P BSE Sensex, the stock opened with gains but failed to carry the momentum and dropped 4.47% to Rs 821 as the trade progressed. HCL shares declined 4.58% to Rs 820.60 on the NSE Nifty 50 index.
The company said in a regulatory filing that it had registered a net profit of Rs 2,651 crore in the July-September 2019 quarter, as per US GAAP. HCL said its revenue grew 6.1% to Rs 18,594 crore in the quarter under review, from Rs 17,528 crore in the corresponding quarter last year.
Its net profit was 7.4% higher from Rs 2,925 crore on a sequential basis and it top line was higher by 4.2% from Rs 17,841 crore in June 2020 quarter. HCL Technologies, in the second quarter, recorded revenue growth at 4.5 per cent quarter-on-quarter in constant currency - higher than its estimate of 1.5-2.5 per cent sequential rise.
HCL Technologies has maintained its revenue growth guidance of an average of 1.5-2.5% 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 per cent in constant currency and 21.6 per cent EBIT margin,” C Vijayakumar said, HCL Technologies president and CEO, said.
Vijayakumar added that the company’s growth momentum was driven by continued leadership in its digital transformation and cloud businesses and a strong stability in the products and platforms segment, all of which continue to open diverse growth avenues for the HCL Technologies.
(With agency inputs)