HCL Tech shares slump 15% on revenue growth concerns

HCL Tech shares slump 15% on revenue growth concerns

Shares of IT services firm HCL Technologies today slumped 15 per cent after the company said it expects revenues for the September quarter to be "tepid", impacted by adverse currency movement and issues with a client in the public services vertical.

Reacting to this, the stock plunged 14.75 per cent to Rs 837.20 at BSE.

On NSE, it tumbled 14.99 per cent to Rs 834.85.

The country's fourth-largest software services firm, which follows July-June fiscal, will announce its earnings for the July-September 2015 quarter in the fourth week of October.

"The revenue growth is likely to be tepid on account of adverse currency impact; a client specific issue and; skewness in revenue growth due to transition timelines for complex engagements particularly in Infrastructure Services," it had said in a filing to the BSE yesterday.

For the quarter ended June 2015, the company's revenues stood at Rs 4,465.50 crore, while for financial year 2014-15, it was Rs 17,153.44 crore.

The Noida-based firm said during the quarter, revenues to be reported in US dollar would have an adverse impact of 80 basis points on account of sharp depreciation of multiple currencies against the greenback.

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