HCL Tech drops after reporting weak Q1 results

HCL Technologies dropped 1.74% to Rs 826.75 at 9:30 IST on BSE after consolidated net profit fell 3.2% to Rs 1726 crore on 3.3% rise in revenue to Rs 10097 crore in Q1 September 2015 over Q4 June 2015.

The announcement of Q1 results as per the US GAAP was made before market hours today, 19 October 2015.

Meanwhile, the S&P BSE Sensex was up 77.92 points or 0.16% at 27,259.26.

On BSE, so far 28,818 shares were traded in the counter as against average daily volume of 1.56 lakh shares in the past one quarter.

Shares of IT company hit a high of Rs 831 and a low of Rs 818.40 so far during the day. The stock had hit a record high of Rs 1,058.20 on 11 March 2015. The stock had hit a 52-week low of Rs 725.18 on 15 December 2014.

HCL Tech's net profit ex-adjustment of one time provision for a project rose 2.2% to Rs 1823 crore in Q1 September 2015 over Q4 June 2015. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) ex-adjustment rose 5.3% to Rs 2211 crore in Q1 September 2015 over Q4 June 2015. The company announced interim dividend of Rs 5 per share for the year ending 30 June 2016 (FY 2016).

Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies said that there are remarkable shifts going on in the world that are changing the way business is done. HCL's 21st Century Enterprise blueprint is at the forefront of this redefinition and is providing enterprises a definitive roadmap to transform their business models to adapt to the digital age; a fact reflected in company's ground-breaking engagements with several forward-looking organizations.

HCL Technologies also said that the board of directors of the company at its meeting held on 19 October 2015 approved a Scheme of Arrangement between HCL Technologies and HCL Comnet (a wholly owned subsidiary of the company). As per the Scheme, the India System Integration Business of the company would be transferred to HCL Comnet on a going concern basis with an objective to have simplified business structure with greater visibility in the performance of individual businesses. The said Scheme is subject to requisite approvals.

Powered by Capital Market - Live News