HCL Tech shares decline 1 pc after Q1 earnings

Shares of HCL Technologies on Wednesday ended over 1 percent lower after the company's June quarter earnings failed to cheer investors.The stock fell 1.11 percent to settle at Rs 917.75 apiece after a muted start on the BSE.

Shares of HCL Technologies on Wednesday ended over 1 percent lower after the company's June quarter earnings failed to cheer investors.

The stock fell 1.11 percent to settle at Rs 917.75 apiece after a muted start on the BSE. During the day, it dipped 2.46 percent to its 52-week low of Rs 905.20.

On the NSE, it declined 1.01 percent to settle at Rs 918.40 apiece.

In volume terms, 3.83 lakh shares were traded on the BSE and over 1.28 crore shares on the NSE during the day.

The 30-share BSE Sensex declined by 372.46 points or 0.69 percent to end at 53,514.15.

On Tuesday, IT services company HCL Technologies reported a 2.4 percent year-on-year rise in its consolidated net profit for the three months ended June 2022 at Rs 3,283 crore.

The revenue of the Noida-headquartered firm stood at Rs 23,464 crore, nearly 17 percent higher than the year-ago period.

The company has retained its FY23 revenue outlook in the 12-14 percent band, as it continues to see ''strong momentum in the market'' and is positive about its growth trajectory.

For the fiscal's first quarter ethat nded June 2022, the net profit of Rs 3,283 crore was 2.4 percent more than in the year-ago period. Seen sequentially, however, the net profit was 8.6 percent lower compared to the March quarter.

''Our operating margin came in at 17 percent. We have put in place the right measures that will improve our profitability going forward,'' HCL Tech CEO and Managing Director C Vijayakumar said.

''HCLT reported broadly in-line revenue performance (a tad better-than-street) though disappointed yet again on margins with EBIT margins of 17 percent,'' according to a research report by JM Financial Institutional Securities.