HCL Tech slips over 6% in two sessions

HCL Technologies fell 2.39% to Rs 917 at 13:10 IST on BSE, extending previous session's 4.10% fall triggered by the company warning of adverse cross currency impact on its earnings in Q3 March 2015.

HCL Technologies issued pre-quarter earnings update after trading hours Tuesday, 31 March 2015. Shares of HCL Technologies fell 4.10% to Rs 939.50 on Wednesday, 1 April 2015. The stock has fallen 6.40% in two trading sessions from Rs 979.65 on 31 March 2015.

Meanwhile, the BSE Sensex was up 34.07 points, or 0.12%, to 28,294.21.

On BSE, so far 4.59 lakh shares were traded in the counter, compared with an average volume of 2.20 lakh shares in the past one quarter.

The stock hit a high of Rs 939 and a low of Rs 915.90 so far during the day. The stock hit a 52-week high of Rs 1,058.20 on 11 March 2015. The stock hit a 52-week low of Rs 628.50 on 19 May 2014.

The stock had underperformed the market over the past one month till 1 April 2015, falling 7% compared with 3.75% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 17.18% as against Sensex's 2.74% rise.

The large-cap company has an equity capital of Rs 281.14 crore. Face value per share is Rs 2.

HCL Technologies in a pre-quarter earnings update issued after market hours on Tuesday, 31 March 2015, said that the company's revenues and EBIT in Q3 March 2015 to be reported in US dollar would have adverse impact of about 280 basis points (bps) and 80 bps respectively in Q3 March 2015 as dollar continued to strengthen against almost all global currencies during the quarter ended 31 March 2015. In spite of the adverse impact of exchange rate movement, the company is confident of achieving EBIT in the range of about 21 to 22% in Q3 March 2015, HCL Technologies said.

HCL Technologies expects to post foreign exchange loss of about $5.5 million in Q3 March 2015, covering both cash flow hedges and mark-to-market of the foreign currency assets and liabilities. This foreign exchange gain or loss would continue to be reported below EBIT, HCL Technologies said. The treasury income (net) for the quarter is expected to be around $32 million being the same level as reported in the previous quarter, HCL Technologies said.

The company expects effective tax rate for the year ending 30 June 2015 to be in the previously guided range of 21% to 22%.

HCL Technologies' consolidated net profit rose 2.3% to Rs 1915 crore on 6.3% growth in revenue to Rs 9283 crore in Q2 December 2014 over Q1 September 2014.

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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