HCL Tech shares decline 1 pc after Q1 earnings

New Delhi: Shares of HCL Technologies on Wednesday ended over 1 per cent lower after the company's June quarter earnings failed to cheer investors.

The stock fell 1.11 per cent to settle at Rs 917.75 apiece after a muted start on the BSE. During the day, it dipped 2.46 per cent to its 52-week low of Rs 905.20.

On the NSE, it declined 1.01 per cent to settle at Rs 918.40 apiece.

In volume terms, 3.83 lakh shares were traded on the BSE and over 1.28 crore shares on the NSE during the day.

The 30-share BSE Sensex declined by 372.46 points or 0.69 per cent to end at 53,514.15.

On Tuesday, IT services company HCL Technologies 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 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.