HCL Tech tumbles after Q1 results

HCL Technologies fell 6.59% to Rs 1,546.95 at 10:03 IST on BSE after net profit rose 2.1% to Rs 1873 crore on 3.7% increase in revenues to Rs 8735 crore in Q1 September 2014 over Q4 June 2014.

The result was announced before trading hours today, 17 October 2014.

Meanwhile, the BSE Sensex was up 29.45 points, or 0.11%, to 26,028.79.

On BSE, so far 1.02 lakh shares were traded in the counter, compared with an average volume of 43,069 shares in the past one quarter.

The stock hit a high of Rs 1,600 and a low of Rs 1,510.60 so far during the day. The stock hit a record high of Rs 1,775.40 on 7 October 2014. The stock hit a 52-week low of Rs 1,034 on 25 October 2013.

The stock had outperformed the market over the past one month till 16 October 2014, rising 3.03% compared with 1.86% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 12.93% as against Sensex's 1.76% rise.

The large-cap company has an equity capital of Rs 140.26 crore. Face value per share is Rs 2.

HCL Technologies' earnings before interest & tax (EBIT) rose 2.4% to Rs 2088 crore in Q1 September 2014 over Q4 June 2014. EBIT Margin stood at 23.9% in Q1 September 2014, lower than 24.2% in Q4 June 2014.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) fell 1.1% to Rs 2192 crore in Q1 September 2014 over Q4 June 2014. EBITDA Margin stood at 25.1% in Q1 September 2014, lower than 26.3% in Q4 June 2014.

"We have posted another healthy quarter of broad-based growth led by a revenue increase of 3.2% QoQ in constant currency. Our customer acquisition momentum continues with yet another billion dollar quarter driven by strong growth in Global Infrastructure Services at 16.9% YoY & Engineering and R&D Services at 14.1% YoY. We have also added 15 Fortune 500/Global 2000 clients this quarter," said Anant Gupta, CEO, HCL Technologies.

"Going forward our investments will continue in the three strategic markets of ITO, Engineering Services Outsourcing and the emerging Digitalization space which will enable a continued balanced business portfolio performance for the company," he added.

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

Powered by Capital Market - Live News