HCL Infosystems up 2% despite slip in Q4 net

The stock finally ended at Rs 161, up 2% from the previous close. The counter clocked volumes of 237,411 shares as compared to the two-week daily average traded volumes of 133,065 shares on the BSE.
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(Updated at 1208hrs)

HCL Infosystems has gained despite a fall in Q4 net.

The stock opened at Rs 156 and soared to a high of Rs 164. The scrip is now trading at Rs 161, up 2% from the previous close. The counter has clocked 127,747 shares as compared to 133,065 shares on the BSE so far. The scrip has soared 28% in a month.

The comapany posted a 7.2% year-on-year fall in net profit after tax (PAT) for the quarter ended June 30. PAT for the quarter was Rs 60.4 crore compared to Rs 65 crore in the year ago period.

The total income rose to Rs 3,106.33 crore during the June quarter from Rs 3,090.28 crore in the same period last fiscal.

The tax department had issued showcause notices in July 2007 asking HCL as to why an adjustment of Rs 48.11 crore should not be made in the ALP.      

Even the TPO in its another showcause notice had asked HCL to explain as to why an adjustment of Rs 239.28 crore should not be made in respect of international transcations entered into by it with its associated firms.     

HCL had challenged the TPO's order that asked it to produce evidence in support of computation of ALP before the High Court, which ruled in its favour. Even the government's review plea was dismissed by the High Court.    

Disposing off the tax department's plea, the Supreme Court Bench clarified that the competent authority should not reject the HCL's application on the ground that the proposal had come after the cut-off date.      

"The competent Authority will decide the matter notwithstanding the pendency of the Appeal before the Commissioner of Income Tax," the court stated. 

Click here to read more: HCL Infosystems' Q4 net down 7%