HCL Technologies hits new high as Q2 profit beats estimate; 1:1 bonus issue

The stock rallied 11% to Rs 1,834 on BSE in early morning trade.

HCL Technologies has zoomed 11% to Rs 1,834, also its record high on the BSE in early morning trade, after reporting a better than expected consolidated net profit at Rs 1,915 crore for the second quarter ended December 31, 2014 (Q2). The information technology (IT) company had profit of Rs 1,873 crore in September quarter.

Revenues grew 6.3% at Rs 9,283 crore on sequential basis. Analysts, on an average, had expected net profit at Rs 1,812 crore on revenues of Rs 8,981 crore for the quarter.

Meanwhile, the board of directors recommended an issue of bonus shares on the company’s equity shares in the ratio of 1:1 i.e. one additional equity share for every one equity share held by the members on the record date to be fixed for this purpose.

The board has also declared an interim dividend of Rs 8 per equity share of Rs 2 each of the company. The payment date of the said interim dividend shall be February 11, 2015, HCL Technologies said in a statement.

At 0925 hours, the stock was up 8% at Rs 1,770 and hit a low of Rs 1,762 on BSE so far. A combined 540,123 shares changed hands on both the counters.