HCL Tech shares end nearly 4% lower as Q3 earnings disappoint

Shares of the country's fourth largest IT services firm HCL Technologies today fell by nearly 4 per cent as the company's March quarter earnings came in below market expectations.
Paring most of its sharp initial losses, shares of HCL Tech ended at Rs 891.05, down 3.48 per cent from its previous close on the BSE. During the day, it lost 9.64 per cent to Rs 834.10.
At the NSE, the stock fell by 3.64 per cent to settle at Rs 890.65.
Following the slump in the stock, the company's market valuation dipped by Rs 4,511.46 crore to Rs 1,25,254.54 crore.

In terms of volume, 4.61 lakh shares of the firm changed hands at the BSE and over 72 lakh shares were traded at the NSE during the day.
"HCL Technologies announced its Q3 FY'15 results below expectations," said Sarabjit Kour Nangra, VP Research - IT, Angel Broking.

HCL Technologies today reported 3.6 per cent rise in third quarter's consolidated net profit at Rs 1,683 crore, while margins were impacted due to currency volatility.
The company, which follows July-June fiscal, had posted a net profit of Rs 1,624 crore in the year-ago period.
The company's consolidated revenue for the reported quarter rose 11 per cent at Rs 9,267 crore from Rs 8,349 crore in the corresponding period a year ago.

However, on a sequential basis, the net profit of the IT major declined by 12.2 per cent from Rs 1,915 crore in Q2 FY 2014-15, while revenue dipped 0.2 per cent from Rs 9,283 crore as its margins dropped on account of currency volatility and a stronger US dollar.
During the quarter, HCL Technologies reported a foreign exchange loss of Rs 142 crore as against a forex gain of Rs 15 crore in the previous quarter, which also adversely impacted the net profit. The currency impact on the revenues was about 270 basis points or 2.7 per cent.
Meanwhile, in the stock market the BSE benchmark Sensex ended at 27,676.04, down 210.17 points.