HCL Technologies dips on disappointing Q3 results

The stock dipped almost 10% to Rs 835 on the National Stock Exchange in early morning trade.

HCL Technologies has dipped almost 10% to Rs 835 on the National Stock Exchange (NSE) in early morning trade, after reporting a 12% quarter-on-quarter (q-o-q) decline in its consolidated net profit at Rs 1,683 crore for the third quarter ended March 2015 (Q3FY15). The company had reported a profit of Rs 1,915 crore in December 2014 quarter.

Consolidated revenues too declined marginally by 0.2% at Rs 9,267 crore on q-o-q basis.

Analysts, on an average, had expected net profit of Rs 1,798 crore on revenues of Rs 9,362 crore for the quarter. "EBITDA margin stood at 22.5% as against 25% in the third quarter of the last fiscal," HCL Technologies said in a statement.

“The operating margin metrics and enhanced working capital requirements have impacted our cash flows and are an outcome of our focused investment agenda for enhancing capability build up and delivery dynamics of large engagements,” said Anil Chanana, CFO, HCL Technologies.

The stock opened at Rs 841 and touched a high of Rs 863 on the NSE. A combined 551,093 shares changed hands on the counter on the NSE and BSE. At 0917 hours, the stock was down 7% at Rs 861 on the NSE.