HCL Technologies dips post Q3 outlook

The stock dipped 3% at Rs 950 after the company said it expects cross currency fluctuations to impact its revenues by 280 bps in the third quarter.

Don't want to miss the best from Business Standard?

Shares of HCL Technologies were trading lower by 3% at Rs 950 on the National Stock Exchange (NSE) after the company said it expects cross currency fluctuations to impact its revenues by 280 basis points (bps) in the third quarter (January-March 2015).

“The revenues and EBIT (earnings before interest, tax) for the January-March 2015 (Q3) quarter to be reported in US Dollar would have adverse impact of around 280 bps and around 80 bps respectively, as US Dollar continued to strengthen against almost all global currencies, during the quarter,” HCL Technologies said in pre-quarter earnings statement.

The company’s revenues are derived in multiple currencies and significant costs are incurred in Indian rupee (INR), it added.

However, in spite of the adverse impact of exchange rate movement as mentioned above, the HCL Technologies is confident of achieving EBIT in the range of around 21%-22% for this quarter.

The company said, it expects to post foreign exchange loss of around USD 5.5 million covering both cash flow hedges and mark-to-market of the foreign currency assets and liabilities. This foreign exchange gain or loss would continue to be reported below EBIT.

The treasury income (net) for the quarter is expected to be around $32 million being the same level as reported in the previous quarter.

HCL Technologies would announce its third quarter earnings in the fourth week of April 2015.

The stock opened at Rs 947 and touched a low of Rs 940 on the NSE. A combined 1.51 million shares changed hands on the counter till 1005 hours on the NSE and BSE.