Rs 12/Share Dividend: IT Stock HCL Tech To Turn Ex-Dividend This Week; Buy?

Bluechip IT stock HCL Tech has declared its Q2FY24 results along with an interim dividend of 600% for the eligible shareholders. According to data available on the BSE, HCL picked October 20 as the record date, and as a result of the company's T+1 settlement framework, the shares will begin trading ex-dividend on that day.

HCL Tech Dividend

"The Board of Directors has declared an Interim Dividend of Rs.12/- per equity share of Rs.2/- each of the Company for the Financial Year 2023-24. The Record date of October 20, 2023 fixed for the payment of the aforesaid interim dividend has been confirmed by the Board of Directors. The payment date of the said interim dividend shall be October 31, 2023," said HCL in a stock exchange filing.

HCL Tech Financials

For the quarter ending in September 2023, HCL Technologies' consolidated net profit jumped by 10% to Rs 3,832 crore from Rs 3,489 crore during the same quarter of the previous year. Its revenue from operations climbed by 8% to Rs 26,672 crore from Rs 24,686 crore in Q2FY23. In Q2FY24, HCL Tech revealed that its attrition rate further dropped from 16.3% in the previous June quarter of the current fiscal year to 14.2% in Q2FY24.

Roshni Nadar Malhotra, Chairperson of HCLTech said "lI am pleased to share that we continue to execute well in a challenging business environment. We are also expanding our global sustainability agenda with the launch of HCLTech Grant Americas to combat climate change."

C Vijayakumar, CEO & Managing Director - HCLTech said "Our revenue growth of 1.0% QoQ and 3.4% YoY on a constant currency basis, with a 154 bps QoQ improvement in operating margin and improving cash flows, reflect our ability to execute well in an evolving business environment and our commitment to operational efficiency. Our new bookings of US$ 4 Bn this quarter is at an all-time high, driven by a standout mega deal. This achievement underscores our ability to seize exceptional opportunities in the market and gives us optimism for our medium-term growth prospects."

Prateek Aggarwal, Chief Financial Officer - HCLTech said "Q2 FY24 growth at 8% YoY (in INR) is accompanied with sharp uptick in margins and deal wins, as well as great cash generation. EBIT margins increased to 18.5%, an increase of 50 bps YoY, 154 bps QoQ. Profit After Tax (PAT) came in at 14.4%, an increase of 30 bps YoY. EBIT was up 1.5% YoY and PAT was up 9.8% YoY. Last Twelve Months (LTM) ROIC for the company stood at 32.2% (up 350 bps YoY) and 39.4% (up 320 bps YoY) for Services business. Cash generation accelerated with LTM OCF US$ 2,820 Mn (151% of PAT) and FCF at US$ 2,662 Mn (142% of PAT)."

HCL Technologies Share Price Target

Commenting on the share price outlook of HCL Tech, Deven Mehata Equity Research Analyst at Choice Broking said, "HCL Tech, a prominent technology firm, has been on an upward trajectory, currently trading at a market price (CMP) of 1270. This suggests a strong bullish sentiment surrounding the stock. What's particularly encouraging is that HCL Tech is trading above its 20-day, 50-day, and 200-day moving averages. This alignment of the stock's price with multiple moving averages is a positive sign for investors, indicating a consistent and sustained uptrend."

"Additionally, there's a small resistance level at 1,280, which, if broken, could serve as a trigger for further upward movement. This implies that the stock has the potential to push higher. The Relative Strength Index (RSI) at 58, and on an upward trajectory, suggests increasing buying activity. RSI values between 30 and 70 are often considered healthy for a stock, and an RSI of 58 leaves room for further upside potential," the analyst further added.

"However, investors should exercise care and keep a watch on the stock if it falls below 1210, as this might negate the favourable outlook. A short-term goal of 1310 is feasible," the analyst of Choice Broking claimed.

Disclaimer

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