HCL Technologies gains post Q1 earnings

The stock was up 5% at Rs 839 on the BSE as compared to 0.71% decline in the S&P BSE Sensex at 09:56 am.

HCL Technologies has rallied 8% to Rs 869 on the BSE in opening trade after the company reported a better than expected 6.3% quarter-on-quarter (QoQ) growth in consolidated net profit at Rs 2,047 crore for the quarter ended June 2016 (Q1FY16). Revenues grew 6% at Rs 11,336 crore on a sequential basis.

Analysts on an average had expected a profit of Rs 1,878 crore on revenues of Rs 11,206 crore for the June quarter.

In dollar terms, the IT firm reported a 6.5% QoQ growth in revenues at $1691 million. Net profit rose 7.1% QoQ to $305 million.

HCL Technologies said it expects FY17 revenue growth to rise between 12% and 14% in constant currency terms.

The above constant currency guidance translates into 11.2% to 13.2% growth in dollar revenue terms based on June 30th 2016 rates.

“FY’17 expected operating margin (EBIT) range is from 19.5% to 20.5%,” the company said in FY’17 guidance.

The board of directors of the company 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 August 19, 2016.

At 09:56 am, the stock was up 5% at Rs 839 on the BSE as compared to 0.71% decline in the S&P BSE Sensex. A combined 4.6 million shares changed hands on the counter on the BSE and NSE.