HCL Tech gets the market enthsued

HCL Tech has proven to be that lone IT company which not only reported a good performance but it also quite optimistic when it comes to the future.

For its Q1FY17, the company posted a modest but nevertheless growth of 6% (QoQ) in net profit at Rs.2047 crore. Its rupee revenue was up 6% at Rs.11,336 crore while dollar revenue also rose 6.5% at $1691 million.

Its EBIT rose 5% at Rs.2333 crore though there was not much improvement in margins at 20.58% v/s 20.8%.

The market is more enthused with its guidance. It expects FY17 dollar revenue to grow in the range of 11.2 to 13.2% and it estimates FY17 EBIT margin at 19.5 to 20.5%.

The stock price, intra day hit a high of Rs.869, up over 8.5%, becoming the top gainer on the BSE for a while. It has since then come off these levels on account of profit booking and it is now hovering around Rs.832, up some 4%.