HCL Tech slumps after issuing revenue growth warning for Q1

HCL Technologies slumped 11.2% to Rs 872.15 at 9:30 IST on BSE after the company through pre-earnings brief highlighted that in the quarter ending 30 September 2015, its revenue growth is likely to be tepid.

The announcement was made after market hours yesterday, 30 September 2015.

Meanwhile, the S&P BSE Sensex was up 232.32 points or 0.89% at 26,387.15.

On BSE, so far 1.37 lakh shares were traded in the counter as against average daily volume of 1.13 lakh shares in the past one quarter.

The stock hit a high of Rs 915 and a low of Rs 837.20 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 Technologies through pre-earnings brief highlighted that in the quarter ending 30 September 2015, its revenue growth is likely to be tepid on account of adverse currency impact, a client specific issue and skewness in revenue growth due to transition timelines for complex engagements particularly in infrastructure services. The company will unveil Q1 September 2015 results in the fourth week of October 2015.

During this quarter, revenues to be reported in US dollar would have an adverse impact of 80 basis points (bps) on account of sharp depreciation of multiple currencies against the US dollar, the company added.

Also, in one of the multi-million multi-year custom application development project being executed for one of the customers in the Public Services vertical by HCL Technologies, certain differences have arisen with reference to the program objectives. While the discussions are on with the customer and the firm is in the process of disengagement, as a matter of prudence the company is considering reserving up to $20 million this quarter, the company said.

On consolidated basis, HCL Technologies' net profit rose 9.68% to Rs 1846.07 crore on 1.61% growth in net sales to Rs 9416.22 crore in Q4 June 2015 over Q3 March 2015.

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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