HCL Technologies stock rallies over 4% post September quarter results

NEW DELHI: Shares of HCL Technologies rallied over 4 per cent in morning trade on Friday after the country’s fourth largest IT firm reported 16.7 per cent year-on-year (YoY) growth in net profit at Rs 2,014 crore for the quarter ended September 30, which was above an estimate of Rs 1,968.50 crore that analysts had made in an ETNow survey.

At 09:30 am, HCL Technologies was trading 3.2 per cent higher at Rs 842. It hit a low of Rs 822 and a high of Rs 848.70 in the first 30 minutes of trade.

HCL Technologies said FY17 revenues are expected to grow between 12 and 14 per cent in constant currency terms. The revenue guidance is based on the (April to March) average exchange rate for FY16.

The IT major said it signed 12 transformational deals during the quarter. The deals were led by geographies of Americas and Europe, spanning across service lines and verticals such as manufacturing, life sciences and healthcare, consumer services, financial services, energy and utilities.

Total revenues rose 14.1 per cent on a YoY basis to Rs 11,519 crore. However, on a QoQ basis, the company recorded a marginal rise of 1.6 per cent in revenues, HCL Technologies said in the release.

"Today’s digital age is rapidly transforming the technology paradigm, redefining the way business and technology engage with each other. This, in turn, is driving an inflection point in the global socio-economic landscape,” said Shiv Nadar, Chairman & Chief Strategy Officer, HCL Technologies.

“We have been reading early signals of this change and have built a sustainable business model by driving focus around technologies of the future, investing in strategic platforms and creating exceptional value for the communities in which we operate globally,” he said.