HCL Technologies turns volatile post Q2 results

The stock was trading flat at Rs 842 at 11 a.m., bouncing back 5% from intra-day low of Rs 800 on the NSE.

Shares of HCL Technologies were trading flat at Rs 842 after recovering 5% from intra-day low of Rs 800 on the National Stock Exchange (NSE).

The stock opened at Rs 867 and touched high of Rs 870 after the company reported a better than expected 11.2% quarter on quarter (Q-o-Q) growth in consolidated net profit at Rs 1,920 crore for the second quarter ended December 2015 (Q2FY16). The revenues grew 2.4% at Rs 10,341 crore on sequential basis.

Analysts on an average had expected profit of Rs 1,817 crore on revenues of Rs 10,329 crore.

Dollar revenue rose 1.4% sequentially to USD 1,566 million and 2.1% in constant currency despite Chennai floods impact, HCL Technologies said in a statement.

Strong client additions and growth across revenue segments helped the company post these results.

“Earlier this quarter, we faced the challenging Chennai situation. Our resilient business models, robust business continuity and disaster recovery practices, coupled with tremendous support from all our clients and employees helped us face the challenge extremely well,” said Anant Gupta, President & CEO, HCL Technologies.

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 year 2015-16.

Angel Broking maintains ‘BUY’ rating on the stock with a price target of Rs 1,132.

“Continuing its momentum of deal wins, HCL booked business in excess of USD 1 billion in TCV this quarter, including 8 transformational deals. The broad–based business wins, across service lines and industry verticals were driven by our next–generation offerings. Thus, on back of strong order book, the company expects the 2HFY2016, to be better than 1HFY2016,” the broking firm said in a client note.