HCL Technologies gains on good Q2 numbers

The stock up 4% to Rs 849 after the company maintained constant currency guidance at 12-14% for FY17.

HCL Technologies was up 4% to Rs 849 on BSE in an otherwise subdued market after the company maintained constant currency guidance at 12-14% for FY17. The company also maintained earnings before interest and tax (EBIT) margin in the range of 19.5% to 20.5%.

“FY'17 Revenues are expected to grow between 12.0% and 14.0% in constant currency. In US dollar terms the guidance translates to 11% to 13% on September 30 2016 rates,” HCL Technologies said in a statement.

The company reported better-than-expected consolidated net profit of Rs 2,014 crore for the quarter ended September 30, 2016 (Q2FY17). Analysts on an average had expected profit of Rs 1,958 crore for the quarter.

Total revenues stood at Rs 11,519 crore, rose 14.1% on a year on year (YoY) basis and 1.6% on quarter on quarter (QoQ) basis.

“Our differentiated strategy encompassing core services, integrated next–generation offerings and platforms, in–line with our Mode 1-2-3 growth strategy. This has helped us deliver a strong growth of 2.8% QoQ and 12.8% YoY this quarter in constant currency, on back of strong Q1 FY'17 performance of 6.0% QoQ growth in constant currency”, said C Vijayakumar, President & CEO, HCL Technologies Ltd.

The board has declared an interim dividend of Rs 6 per equity share of Rs 2 each of the company for the Financial Year 2016-17.The payment date of the said interim dividend shall be November 7, 2016, the company said.

At 09:43 am, the stock was up 3% at Rs 840 on BSE, as compared to 0.25% decline in the S&P BSE Sensex. A combined 2.5 million shares changed hands on the counter on BSE and NSE so far.