HCL Tech share scales all-time high on strong guidance in Q2 update
BusinessToday.In September 14, 2020
HCL Technologies share touched its all-time high today after the IT player raised its outlook for the quarter ending September 2020 in a mid quarter update. HCL Tech stock has gained after 3 days of consecutive fall. Earlier, the stock opened with a gain of 2.49% at Rs 739 against previous close of Rs 721 on BSE. The IT stock touched an all time high of Rs 807.8, rising up to 12.03%.
HCL Technologies share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has risen 47.4% in one year and gained 38.67% since the beginning of this year.
The IT stock has climbed over 11% in a month and week. Market cap of the IT player rose to Rs 2.14 lakh crore. Total 7.56 lakh HCL Tech shares changed hands amounting to turnover of Rs 59.32 crore on BSE.
"We expect the revenue and the operating margin for the current quarter (September'20) to be meaningfully better than the top end of the guidance we had provided in July'2020. We have seen strong execution during the quarter to date, and continue to execute to the plan this month," the firm said in a communication to bourses.
On the revenue front, the firm said, "Growth for the current quarter is expected to exceed 3.5% quarter-on-quarter in constant currency, enabled by broad-based momentum across all service lines, verticals and geographies."
The IT firm pegged percentage growth in earnings before interest, tax, depreciation and amortization (EBIT) for the current quarter between 20.5% and 21%.
Good booking momentum continues this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals, the IT firm said, adding the order pipeline continues to look healthy across service lines, verticals and geographies.
In Q1 of the current fiscal, the firm posted a 31.7 per cent rise in consolidated net profit at Rs 2,925 crore, and said it expects to see a positive growth trajectory in the coming quarters on the back of strong deal pipeline.
HCL Technologies, which had posted a net profit of Rs 2,220 crore in the April-June 2019 quarter (as per US GAAP), will not offer any salary increments to its staff this fiscal.
Revenue grew 8.6 per cent to Rs 17,841 crore in the quarter under review from Rs 16,425 crore in the corresponding quarter last year. On a sequential basis, topline was lower by 4 per cent from Rs 18,590 crore in March 2020. In constant currency terms, HCL Tech's revenue in June 2020 quarter grew 1 per cent year-on-year.