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HCL Tech trips after client files lawsuit

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HCL Technologies dropped 0.59% to Rs 866.30 at 11:00 IST on BSE after the company said its client filed a lawsuit in the United States District Court against the company.

The company issued the clarification on Saturday, 25 March 2017 with regards to news item appearing in the media.

Meanwhile, the S&P Sensex was down 154.34 points or 0.52% at 29,267.06.

On the BSE, 6,957 shares were traded on the counter so far as against the average daily volumes of 2.1 lakh shares in the past one quarter. The stock had hit a high of Rs 873 and a low of Rs 865.30 so far during the day.

The stock had hit a 52-week high of Rs 880 on 23 March 2017 and a 52-week low of Rs 706.50 on 11 May 2016. The stock had outperformed the market over the past one month till 24 March 2017, rising 3.42% compared with the 1.83% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 9.73% as against Sensex's 12.98% gains.

The large-cap company has equity capital of Rs 285.36 crore. Face value per share is Rs 2.

HCL Technologies said MillerCoors, LLC, a client of the company has filed a lawsuit in the United States District Court for the Northern District of Illinois against the company and HCL America Inc., a wholly owned subsidiary of the company.

MillerCoors allegations under the complaint is that HCL did not deliver an enterprise software project as per the agreed timelines. The specific project started in December 2013 and ended in June 2016. The company continues to have a good business relationship with MillerCoors. The company has other ongoing projects with MillerCoors running smoothly.

The company is in discussions with MillerCoors to resolve this matter amicably. The project in consideration has already ended and the company is not expecting any adverse financial impact of the same for Q4 March 2017.

HCL Technologies' consolidated net profit rose 2.3% to Rs 2062.04 crore on 2.56% growth in net sales to Rs 11814.20 crore in Q3 December 2016 over Q2 September 2016.

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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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 27 2017. 11:34 IST