HCL Tech shares dip 6%; mcap down by Rs 8,322 cr post earnings

Shares of HCL Technologies today ended 6 per cent lower, wiping out Rs 8,322 crore from its market valuation, after the company posted 2.8 per cent fall in consolidated net profit for June 2015 quarter.
The stock slumped 5.94 per cent to settle at Rs 937.40 on the BSE. During the day, it lost 6.37 per cent to Rs 933.10.
At the NSE, shares of the company dipped 5.95 per cent to Rs 938.85 at close.
Following the decline in the stock, the company's market valuation plummeted by Rs 8,322.58 crore to Rs 1,31,796.42 crore.
India's fourth-largest software services firm HCL Technologies today posted 2.8 per cent fall in consolidated net profit at Rs 1,783 crore for June 2015 quarter on account of higher selling, general and administrative (SG&A) expenses.

The company had posted a net profit of Rs 1,834 crore in the year-ago period, it said in a statement.

However, its consolidated revenues rose 16.1 per cent to Rs 9,777 crore in April-June as against Rs 8,424 crore in the same period last year as per US GAAP accounting.
The firm follows July-June as the fiscal year.
Kotak Securities Head of Private Client Group Research Dipen Shah said the results were lower than expectations, both on the revenues and margins front.
"There was a significant miss on the margin front. The relatively higher utilisation rates coupled with the need to increase sales, marketing investments and investing in emerging businesses may continue to impact profitability in the short term," he added.

For the full year ended June 30, 2015, its net profit moved up 13.9 per cent to Rs 7,254 crore as against Rs 6,369 crore in the previous year.
Revenues rose 12.6 per cent to Rs 37,061 crore during the year compared with Rs 32,917 crore in 2013-14.