HCL Technologies dips 2% on profit booking post December quarter results

HCL Technologies dips 2% on profit booking post December quarter results

Shares of HCL Technologies dipped 2 per cent to Rs 1,007 on the BSE in early morning trade on Friday, down 5 per cent in the past three trading days, on account of profit booking after the company reported a 26.2 per cent quarter on quarter (QoQ) growth in consolidated net profit at Rs 3,969 crore in December quarter (Q3FY21) earlier today.

The stock of the information technology (IT) consulting and software company hit a record high of Rs 1,073 on Wednesday, January 13, 2021. Despite the past three days' of fall, the stock has outperformed the market in the last one month by surging 14 per cent as against a 7 per cent rise in the S&P BSE Sensex.

Meanwhile, the revenue for the quarter under review increased by 6.43 per cent year on year (YoY) and 3.80 per cent QoQ to Rs 19,302 crore.

The dollar revenue for the December quarter was at $2,617 million, up 4.4 per cent QoQ and 2.9 per cent YoY. The revenue in constant currency was up 3.5 per cent QoQ and 1.1 per cent YoY.

The firm said it expects revenue to grow between 2 per cent to 3 per cent in constant currency terms for Q4FY21, including DWS contribution, from 1.5-2.5 per cent projected earlier. EBIT (earnings before interest and tax) margin is expected to be between 21.0 per cent and 21.5 per cent for FY’21.

The management said this solid performance was driven by robust momentum in our Mode 2 and Mode 3 businesses led by Digital, Cloud and Products & Platform segments.

“The technology sector is in the midst of a massive digitization wave, with more global enterprises embracing digital transformation to address the disruption of these unprecedented times. Technology has been a key enabler during the pandemic, and as we stand at the cusp of the next phase of technological innovation, it is vital that we draw inspiration from each other’s strengths and offer back our own to create a positive impact,” said Shiv Nadar, Chief Strategy Officer, HCL Technologies.