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HCL Technologies shares tumbles after Q1 earnings

HCL Technologies announced its numbers after the close of market hours.

SNS | New Delhi |

Shares of HCL Technologies on Tuesday dipped 3 per cent after the company’s June 2021 quarter earnings failed to enthuse investors.

The stock went lower by 3 per cent to Rs 969.50 on the BSE. At the NSE, it dipped 3 per cent to Rs 969.35.

At 3.18 pm, 2.41 per cent to Rs 976.10 on the BSE.

On Monday, IT services major HCL Technologies posted a 9.9 per cent rise in consolidated net profit to Rs 3,214 crore for the June 2021 quarter and exuded confidence in logging double-digit constant currency growth in FY22 on the back of strong deal pipeline.

Also, Shiv Nadar, a pioneer in the Indian IT sector, has stepped down as the managing director and board member of the company, a year after handing over the reins of the IT major to his daughter, Roshni Nadar Malhotra.

C Vijayakumar, president and CEO of the company, will take on managing director with a title of CEO and MD for a term of five years with effect from July 20.

The Noida-headquartered company had registered a net profit of Rs 2,925 crore in the April-June 2020 quarter (as per US GAAP). Its revenue grew 12.5 per cent to Rs 20,068 crore in the quarter under review, from Rs 17,841 crore in the year-ago period.

HCL Technologies announced its numbers after the close of market hours.

Sanjeev Hota, head (research) at Sharekhan by BNP Paribas, said HCL Tech reported below-than-expected revenue growth and operating profitability. At the same time, net profit remained in-line with its expectation on the back of lower tax provisions.