HCL Tech slips after reporting tepid revenue growth in Q2

HCL Technologies lost 2.77% to Rs 820 at 10:25 IST on BSE after consolidated net profit rose 11.2% to Rs 1920 crore on 2.4% growth in revenue to Rs 10341 crore in Q2 December 2015 over Q1 September 2015.

The results are as per US GAAP. The result was announced before market hours today, 19 January 2016.

Meanwhile, the S&P BSE Sensex was up 105.43 points or 0.44% at 24,293.80.

On BSE, so far 1.71 lakh shares were traded in the counter as against average daily volume of 1.26 lakh shares in the past one quarter. The stock hit a high of Rs 870.15 and a low of Rs 799.50 so far during the day. The stock had hit a 52-week low of Rs 798 on 12 January 2016. The stock had hit a record high of Rs 1,058.20 on 11 March 2015. The stock had outperformed the market over the past one month till 18 January 2016, sliding 0.41% compared with Sensex's 5.22% fall. The scrip had also outperformed the market in past one quarter, rising 0.24% as against Sensex's 11.12% fall.

The large-cap company has equity capital of Rs 281.86 crore. Face value per share is Rs 2.

HCL Technologies' earnings before interest, taxation, depreciation and amortization (EBITDA) rose 6.4% to Rs 2225 crore in Q2 December 2015 over Q1 September 2015. EBITDA margin edged up to 21.5% in Q2 December 2015 from 20.7% in Q1 September 2015.

In dollar terms, HCL Technologies' consolidated net profit as per US GAAP rose 10.3% to $290.8 million on 1.4% growth in revenue to $1566.1 million in Q2 December 2015 over Q1 September 2015. Revenue in constant currency terms rose 2.1% on sequential basis in Q2 December 2015.

Anil Chanana, Chief Financial Officer of HCL Technologies said that the company's performance in Q2 continues to reflect the return from the investments it has been making. The return on equity for calendar year 2015 at 29% has been amongst the best in the industry, Chanana said.

HCL Technologies is a leading global IT services company working with clients in the areas that impact and redefine the core of their businesses.

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