HCL Tech shares fall 5%; m-cap drops Rs 7009 cr

Marco Green
May 3, 2018

HCL Technologies today posted a 9.8 per cent decline in its consolidated net profit for the March 2018 quarter at Rs 2,230 crore and said it expects to see a "better deal pipeline" in FY19, driven by digital services.

Shares of HCL Technologies have dipped 7% to Rs 924 per share on the BSE in early morning trade, extending their 5% fall on Wednesday as weak organic growth guidance raised concerns, according to analysts.

Shares of HCL Technologies today dropped 5 per cent after the company posted a 9.8 per cent decline in consolidated net profit for the March 2018 quarter. It was still up 1.5 per cent compared to the December quarter. The company's fourth largest software services firm had reported a net profit of Rs 2,474 crore in the corresponding quarter a year ago, as per Indian Accounting Standards (Ind AS). We have achieved both on revenue and margin front.

According to President & CEO C.Vijayakumar, the deal pipeline for fiscal 2019 looks similar or better than past year. And it has paid off - revenues from these offerings together grew 41.5 per cent in FY18, and together accounted for 23.4 per cent of the firm's revenues for the fiscal (up from 18.6 per cent in FY17).

During the quarter, HCL Technologies signed 15 transformational deals, led by verticals of financial services, manufacturing, public services, lifesciences and healthcare.

Shares of HCL Technologies slumped almost 8 per cent in Thursday's session, extending its slide to the second session following IT major's less-than-expected fourth quarter results.

Other reports by Click Lancashire

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