HCL Technologies shares decline nearly 4 pc after Q3 earnings

Shares of HCL Technologies declined nearly 4 per cent on Friday despite the company reporting a 31.1 per cent rise in December quarter net profit.

Even after opening the day on a positive note, the stock failed to carry the momentum and declined 3.73 per cent to close at Rs 989.40 on the BSE. During the day, it dipped 4.23 per cent to Rs 984.20.

On the NSE, it went lower 3.72 per cent to close at Rs 989.50.

The company's market valuation declined by Rs 10,405.98 crore to Rs 2,68,490.02 crore on the BSE.

In traded volume terms, 9.05 lakh shares were traded at the BSE and 2.37 crore units at the NSE during the day.

HCL Technologies on Friday posted a 31.1 per cent rise in its December quarter net profit at Rs 3,982 crore on the back of strong momentum in its digital, products and platform segment, and exuded confidence in clocking further acceleration in bookings in the coming quarters.

The IT services major, which had registered a net profit of Rs 3,037 crore in the year-ago period, has also crossed the USD 10 billion revenue milestone in CY2020.

HCL Tech's revenue grew 6.4 per cent to Rs 19,302 crore in the quarter under review from Rs 18,135 crore in the year-ago period (as per US GAAP).

The company recorded revenue growth at 3.5 per cent quarter-on-quarter in constant currency, beating its own estimate of 1.5-2.5 per cent growth for the December quarter.

HCL Tech has now revised its sequential revenue growth guidance to 2-3 per cent (including DWS contribution) in constant currency from its previous estimate of 1.5-2.5 per cent increase quarter-on-quarter for the March 2021 quarter.

"The calendar year 2021 has started on a very strong financial note. Our strategic bets continue to deliver outstanding results as reflected in our sequential revenue growth of 3.5 per cent in constant currency and 4.4 per cent in US dollars," HCL Technologies President and CEO C Vijayakumar said.

The company continues to see a strong pipeline and remains confident of "even further acceleration of bookings in the coming quarters", he added.

"Looking ahead, a combination of a strong pipeline, good order booking gives us a lot of optimism about the growth trajectory. I strongly believe that we are uniquely differentiated through a combination of solutions and services..." he said.