HCL Technologies falls 5% as Q4 profit misses estimates

HCL Technologies dipped 5% to Rs 1,002 on the BSE in early morning trade after the IT company reported a lower than expected 1.5% quarter on quarter rise in its net profit at Rs 22.27 billion in March quarter (Q4FY18). Revenue grew 2.9% at Rs 131.79 billion over the previous quarter.

Analysts on an average had expected profit of Rs 22.88 billion on revenue of Rs 132.19 billion for the quarter.

HCL Technologies said it expected revenue in the current year (FY19) to rise 9.5%-11.5% in constant currency (CC) terms. The constant currency guidance translates to 10.5% to 12.5% in dollar terms based on March 31, 2018 rates.

In FY18, the company had posted revenue growth of 10.5% in CC terms and 12.4% in USD terms.

HCL Technologies expected operating margin (EBIT) range is from 19.5% to 20.5% for FY19 against 19.75% in FY18.

At 10:18 am; the stock was trading 3% lower at Rs 1,024 on the BSE, against 0.10% decline in the S&P BSE Sensex. A combined 3.54 million shares changed hands on the counter on the BSE and NSE so far.