HCL Tech shares drop on missing revenue forecast 







HCL Tech shares drop on missing revenue forecast In dollar terms, HCL’s net income stood at $307 million on a revenue of $1.433 billion Moulishree Srivastava inShare 0 inShare 0 Comments Subscribe to: Daily Newsletter Breaking News Latest News 11:17 AM IST TCS, HCL Technologies shares fall over 8%; CMC dives 16% 10:38 AM IST Sensex trades marginally higher; M&M, Hero MotoCorp gain 10:32 AM IST Modi government’s MGNREGA conundrum 10:02 AM IST Fuzzy numbers make China’s economy world’s biggest 09:58 AM IST Bilawal Bhutto seeks Pakistan political revival in democracy defence Editor's picks Modi launches labour reforms to make doing business in India simpler TCS Q2 profit up 13.2% to Rs5,244 crore but lags estimates Tata Steel refinances international debt portfolio India reviews Ebola preparedness Danone may part ways with joint venture partner Rahul Narang Group HCL’s profit and revenue rose marginally on a sequential basis. Net income grew 3.7% over the June quarter, while net sales rose 2.1%. Photo: Ramesh Pathania/Mint New Delhi: A day after Tata Consultancy Services Ltd (TCS) posted results that disappointed the Street, HCL Technologies Ltd shares fell as much as 8.8% on Friday, as it missed revenue forecast by analysts. HCL Technologies, India’s fourth largest software exporter, posted a 32% rise in net profit to Rs.1,873 crore for the three months ending 30 September. Net sales rose 10% to Rs.8,735 crore. In dollar terms, net income stood at $307 million, a 36% increase over last year, on a revenue of $1.433 billion, which grew 13%. Analysts were, on average, expecting the company to post consolidated net profit of $285.45 million on a revenue of $1.44 billion for the quarter, according to a Bloomberg poll of analysts. In rupee terms, net profit was estimated at Rs.1,753.4 crore on net sales of Rs.8,815.1 crore. Sequentially, in dollar terms, net income grew by 0.6% over the June quarter, while revenue went up by 1.9%. HCL Technologies’ chief executive Anant Gupta said, “We have posted another healthy quarter of broad-based growth led by a revenue increase of 3.2% quarter-on-quarter in constant currency. Our customer acquisition momentum continues with yet another billion-dollar quarter driven by strong growth in global infrastructure services at 16.9% year-on-year (growth), and engineering and R&D services at 14.1%. We have also added 15 Fortune 500/global 2,000 clients this quarter.” “Going forward our investments will continue in the three strategic markets of ITO (information technology outsourcing), engineering services outsourcing and the emerging digitalization space which will enable a continued balanced business portfolio performance for the company,” he added. On Thursday, India’s largest software services exporter Tata Consultancy Services Ltd (TCS) reported lower-than-expected growth in its rupee profit and revenue for the three months ended 30 September from a year ago. The company’s net profit rose Rs.5,244 crore in the September quarter, up 13.2%, on a revenue of Rs.23,816 crore, which rose 13.5% from Rs.20,977 crore a year ago. Last week, India’s second-largest software services exporter, Infosys Ltd, reported higher-than-expected 28.6% increase in fiscal second quarter (Q2) net profit to Rs.3,096 crore on a revenue of Rs.13,342 crore. “HCL’s performance has exceeded the market expectations. It’s showing signs of healthy growth, but not industry leading as yet. This quarter, too, HCL has posed with revenue growth of 3.2% quarter-on-quarter. While HCL is continuously striving to create a strong foothold in the digital space, Greyhound Research is of the opinion that it’s best if HCL focuses on services and verticals which haven’t been generating profits for the company,” said Sanchit Vir Gogia, chief analyst and chief executive officer, Greyhound Research. “Traditionally weak on the application services, the investor community is looking at improving account management.” “The company holds a strong foothold in infrastructure management which has been generating a steady stream of revenue for the company. The utilization rate at 82.7% is a healthy rate as per industry standards. Attrition is likely to increase at HCL this quarter,” he added. Shares of HCL Technologies were trading 6.5% lower at Rs.1,548 apiece on BSE at 10:10am, while the benchmark Sensex was up 0.08% to 26,021.34. 0 inShare 0 Comments 

comment = A day after Tata Consultancy Services Ltd (TCS) posted results that disappointed the Street, HCL Technologies Ltd shares fell as much as 8.8% on Friday, as it missed revenue forecast by analysts.

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