HCL Tech gains after Q3 earnings

HCL Technologies rose 2.48% to Rs 1012.65 at 10:53 IST on BSE after consolidated net profit rose 2.8% to Rs 2605 crore on 5.6% increase in revenues to Rs 15699 crore in Q3 December 2018 over Q2 September 2018.

The result was announced after market hours yesterday, 29 January 2019.

Meanwhile, the S&P BSE Sensex was almost flat at 35,590.76.

On the BSE, 1.21 lakh shares were traded in the counter so far compared with average daily volumes of 51,000 shares in the past two weeks. The stock had hit a high of Rs 1034.75 and a low of Rs 1002.55 so far during the day. The stock hit a 52-week high of Rs 1,124.50 on 25 September 2018. The stock hit a 52-week low of Rs 880 on 5 June 2018.

HCL Technologies expects its FY2019 revenues to grow between 9.5% to 11.5% in constant currency. The constant currency guidance translates to 7.9% to 9.9% in USD terms based on 31 December 2018 rates.

Operating Margin (EBIT) in FY2019 is expected in range from 19.5% to 20.5%.

C.Vijayakumar, president & CEO, HCL Technologies said the company's revenues grew 5.6% sequential in constant currency, reflecting strong execution across its entire suite of services & products. The company crossed $1.5 billion run rate in its Mode 2 next generation offerings. The company once again sets a new bookings' record this quarter. HCL is entering 2019 with a healthy growth outlook backed by the strong relevance of its propositions in the market.

Prateek Aggarwal, CFO, HCL Technologies said the firm is happy to announce an all-round solid Q3 performance. The company has delivered strong revenue growth at 13% year on year in constant currency at stable 19.6% EBIT margin. The firm's EBITDA has exceeded $2 billion milestone on run rate basis. Cash EPS on LTM basis stands at a robust Rs 82, increasing 11.4% over previous year. HCL continues to post handsome Return on Equity (ROE) and Return on Invested Capital (ROIC) at 25.1% and 28.7% respectively, on LTM basis.

HCL Technologies (HCL) is a leading global technology company that helps global enterprises re-imagine and transform their businesses through digital technology transformation.

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