HCL Technologies share falls over 4% post Q2 earnings
BusinessToday.In October 16, 2020
Shares of IT firm HCL Technologies fell almost 5% intraday on Friday after the company posted its Q2 earnings.
The company reported an 18.5% year-on-year (YoY) rise in net profit at Rs 3,142 crore for the September quarter compared with Rs 2,651 crore profit in the corresponding quarter of last year.
At the opening bell, HCL Tech stock price gained 2.04% to touch an intraday high of Rs 877 post the announcement. Later, the highly volatile stock erased early gains and hit an intraday low of Rs 821, falling 4.47% against the last closing of Rs 859.45 on BSE.
HCL Tech stock has fallen 7.44% in the last 3 days.
HCL Technologies stock has gained after 5 days of consecutive fall. Market capitalisation of the large-cap firm stood at Rs 2,25,765 crore as of today's session. HCL Tech shares trade higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages.
The stock price of HCL Technologies has risen over 5% in one month and 46% since the beginning of the year.
The net profit was 7.4% higher from Rs 2,925 crore, sequentially, while the company recorded revenue growth at 4.% QoQ in constant currency.
HCL Tech retained its guidance at 1.5-2.5% for the coming quarters. The IT major also raised its margin guidance for the third and fourth quarter.
The company board announced an interim dividend of Rs 4 per share, HCL Technologies said in a regulatory filing. Dollar revenue for the quarter came in at $2,507 million.
C Vijayakumar, President & CEO, HCL Technologies said that the company would hike salaries effective October 1 for up to E3 level employees and January 1 for E4 and above level employees. "This is just a one-quarter shift from the regular annual cycle," he added.
"Our investments over the last few years in next-gen technologies have held us in good stead during these difficult times and position us strongly to leverage the emerging market opportunities," Vijayakumar said.
Jyoti Roy- DVP- Equity Strategist at Angel Broking said," September quarter revenue was in line with our expectations, gross margins came in ahead of expectations. Despite currency headwinds, Ebitda and net profits for the quarter too were in line with our expectations. We continue to remain positive on HCL Technologies post the Q2 numbers".