HCL Tech shares climb over 1% after earnings announcement

New Delhi: Shares of HCL Technologies on Thursday morning climbed over 1 per cent after the company reported a 7.6 per cent year-on-year rise in its June quarter net profit on the back of new order wins.

The IT major has also signed a definitive agreement to acquire a 100 per cent stake in ASAP Group, a German automotive engineering services provider, for 251.1 million euro (about Rs 2,300 crore).

The acquisition is likely to be completed by September 2023 through an all-cash deal through its UK subsidiary, subject to regulatory approvals, according to a BSE filing released on Wednesday.

The stock recovered all its early lost ground and gained 1.31 per cent to Rs 1,124.70 on the BSE.

At the NSE, it climbed 1.24 per cent to Rs 1,124.40 after falling in initial trade.

The company's consolidated net profit at Rs 3,534 crore in the April-June period was up from Rs 3,283 crore, in the same period a year back, according to a stock exchange filing on Wednesday.

On a quarter-on-quarter basis, its net profit fell 11 per cent when compared to Rs 3,983 crore earnings in the January-March period.

The company's revenue at Rs 26,296 crore was down 1.2 per cent quarter-on-quarter but up 12.1 per cent year-on-year.

On a constant currency, revenue was down 1.3 per cent quarter-on-quarter but up 6.3 per cent year-on-year.

HCL said it won 18 large deals, 7 in services and 11 in software, during the June quarter.

The firm projected a revenue growth of 6-8 per cent in constant currency terms and an EBIT (Earnings Before Interest and Taxes) margin of 18-19 per cent.