HCL Technologies trades flat post Q4 results

HCL Technologies was trading flat at Rs 842, declining nearly 2% from its early morning high on BSE, after the company guided revenue growth between 10.5% and 12.5% in constant currency (CC) for the financial year 2017-18 (FY18). The company had recorded revenue growth in CC at 13.7% in FY17, over the previous fiscal.

In USD terms, guidance translates to 9.9% to 11.9% for FY18 based on March 31, 2017 rates, HCL Technologies said in press release. For FY17, it had posted revenue at $6,975 million; up 11.9% over FY16.

Edelweiss Securities expected HCL Technologies FY18 revenue growth guidance at 13.0%- 15.0% in CC, aided by revenue from the IBM deals, Geometric and Butler Aerospace acquisitions (implying organic revenue growth of 8-10%).

For the quarter ended March, 2017 (Q4FY17), the company reported revenue growth 3.8% on quarter-on-quarter (QoQ) basis in CC and 4.1% in $ terms.

The brokerage firm expected HCL Technologies to post revenue growth of 4.7% QoQ in USD terms and 5.0% in constant currency.

Meanwhile, HCL Technologies, India’s fourth largest IT services firm, reported 12.3% QoQ growth in net profit to Rs 2,325 crore for Q4FY17. Revenues grew by 2% to Rs 12,053 crore on sequential basis.

Analysts on an average had expected profit of Rs 2,104 crore on revenues of Rs 12,177 crore for the quarter.

At 10:17 am; the stock was up 0.08% at Rs 843 on BSE as compared to 0.26% rise in the S&P BSE Sensex. A combined around 1.5 million shares changed hands on the counter on BSE and NSE so far.