HCL Tech slumps after management indicates lower rev growth in FY23

HCL Technologies (HCL) dropped 6.83% to Rs 1026 after the management indicated that FY23 revenue growth will be at the lower end of earlier guidance.

The company held its Investor Day in New York on 8 December 2022.

Chief executive officer C Vijayakumar at company's Investor Day said: "In October, we had increased our guidance from 13.5% to 14.5%. We had certain assumptions which helped us to devise 16-17% services growth. We had assumed certain furloughs. But we are seeing a bit higher. BFSI is the segment which is little bit impacted by furloughs, followed by tech companies," he said.

The IT major reported 6.27% rise in consolidated net profit to Rs 3,489 crore on a 5.2% rise in revenue to Rs 24,686 crore in Q2 FY23 over Q1 FY23. Compared with Q2 last year, net income rose 7.09% while topline jumped 19.5% in the second quarter.

For FY23, the company increased revenue guidance to 13.5%-14.5% YoY in constant currency. It expected services revenue to grow 16%-17% YoY in constant currency. EBIT margin guidance was revised to 18%-19%.

HCL empowers global enterprises with technology for the next decade, today. HCL offers its services and products through three business units: IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products & Platforms (P&P).

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