HCL Tech Shares Fall 5% As Numbers Lag Estimates

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, August 3, 2015, 10:53 [IST]

Shares in HCL Tech fell a huge 5 per cent after the company's margins disappointed the street. The stock was last trading 5 per cent lower at Rs 950 on the National Stock Exchange.

India's fourth-largest software services firm HCL Technologies today reported a 2.8 per cent decline in its consolidated net profit at Rs 1,783 crore for the fourth quarter ended June 30, 2015.

The company had posted a net profit of Rs 1,834 crore in the year-ago period, it said in a statement. However, its consolidated revenues rose 16.1 per cent to Rs 9,777 crore in April-June as against Rs 8,424 crore in the same period last year as per US GAAP accounting.

The firm follows July-June as the fiscal year. Commenting on the performance, HCL Technologies President and CEO Anant Gupta said: "HCL has yet again posted a broad- based performance for the financial year led by a robust revenue growth of 15.1 per cent last 12 months (LTM) year-on- year and 2.9 per cent sequentially in constant currency."

All verticals posted strong double-digit performance in 2014-15 and industry-leading growth in the US and Europe with 14 per cent and 18.7 per cent yoy constant currency growth, respectively, on an LTM basis, he added. "FY15 also saw us signing of 58 transformational engagements with more than USD 5 billion of total contract value," he said.