HCL shares falls on Q1 profit miss, margin woes

Shares of HCL Technologies on Wednesday dipped over 2 per cent to hit its 52-week low after the company's June quarter earnings failed to cheer investors.

The stock fell 2.46 per cent to hit its 52-week low of Rs 905.20 after a muted start on the BSE.

At the NSE, it declined 2.45 per cent to its 52-week low of Rs 905.

IT services company HCL Technologies on Tuesday reported a 2.4 per cent year-on-year rise in its consolidated net profit for the three months ended June 2022 at Rs 3,283 crore.

The revenue of the Noida-headquartered firm stood at Rs 23,464 crore, nearly 17 per cent higher than the year-ago period.

The company has retained its FY23 revenue outlook in the 12-14 per cent band, as it continues to see "strong momentum in the market" and is positive about its growth trajectory.

For the fiscal's first quarter ended June 30, 2022, the net profit at Rs 3,283 crore was 2.4 per cent more than in the year-ago period. Seen sequentially, however, the net profit was 8.6 per cent lower compared to the March quarter.

"Our operating margin came in at 17 per cent. We have put in place the right measures that will improve our profitability going forward," HCL Tech CEO and Managing Director C Vijayakumar said.

"HCLT reported broadly in-line revenue performance (a tad better-than-street) though disappointed yet again on margins with EBIT margins of 17 per cent," according to a research report by JM Financial Institutional Securities.