HCL Tech disappoints market
The market is not too happy with the performance of HCL Tech. For its first quarter period ended 30th Sept 16 (year ending 30th June), it posted a 3% (QoQ) decline in consolidated net profit at Rs.1726 crore while topline was up 3% at Rs.10,097 crore. Dollar revenue was almost status quo, showing less than 1% rise at $1545 million. It is not like as though these muted numbers came as a total surprise – the company had forewarned in September that revenue could be muted, blaming it on adverse currency fluctuations and other factors.
But on the EBIT front, the company did well. During the quarter EBIT was up 11% at Rs.2076 crore while margin rose 36 bps to 20.56%. And after considering its US$18 million provisions, adjusted EBIT margin stood at 19.4%.
The stock is currently down 2% at Rs.824 and figures out amongst the top five losers on the BSE currently. Its intra day low is at Rs.818.