HCL Tech Falls 4% on profit-booking post-September quarter results
Shares of HCL Technologies on Friday slipped 4 per cent to Rs 821 on the BSE as investors booked profit after the company reported better-than-expected earnings for the quarter ended September 2020 (Q2FY21). The stock has fallen 8 per cent in the past two trading days and corrected 10 per cent from its record high level of Rs 911, touched on October 14, 2020.
HCL Technologies posted 7.4 per cent quarter on quarter (QoQ) rise in the September quarter net profit at Rs 3,142 crore. Its revenue grew 4.2 per cent to Rs 18,594 crore in the quarter under review, from Rs 17,841 crore in June 2020 quarter.
In constant currency terms (CC), the company recorded revenue growth at 4.5 per cent – higher than its estimate of 1.5-2.5 per cent sequential rise. The company has maintained its revenue growth guidance of an average of 1.5-2.5 per cent increase quarter-on-quarter in constant currency for the third and fourth quarter.
ICICI Securities had expected HCL Tech to report 3.5 per cent QoQ growth in revenues in CC terms. In rupee terms, revenues are expected to grow 2.9 per cent QoQ. EBIT margins are expected to increase 80 bps QoQ led by operating leverage and cost rationalization, the brokerage firm had said in an earnings preview.
The board of directors has declared an interim dividend of Rs 4 per equity share for the financial year 2020-21.
At 10:25 am, HCL Technologies was trading 3 per cent lower at Rs 832 on the BSE, against 0.36 per cent decline in the S&P BSE Sensex. A combined around 15 million equity shares were changing hands on the counter on the NSE and BSE. Despite the recent fall, the stock has outperformed the market by surging 81 per cent in the past six months, against 31 per cent rise in the Sensex.