HCL Technologies shares rally nearly 5 pct on robust earnings

Written by PTI | Mumbai | Updated: Jan 17 2014, 02:10am hrs
HCl technologiesShares of HCL Technologies climbed nearly 5 pct after the company reported 58.4 pct rise in consolidated net profit for the second quarter. Reuters
Shares of HCL Technologies today climbed nearly 5 per cent after the company reported 58.4 per cent rise in consolidated net profit for the second quarter ended December 31, 2013, beating market expectations.

After suging 4.71 per cvent to Rs 1,398.30 -- its 52-week high in intra-day trade, the stock of the country's fourth largest software services exporter finally ended at Rs 1,391.90, up 4.23 per cent on the BSE.

At the NSE, the scrip setttled 4.63 per cent higher at Rs 1,392.

Following the rally in the stock, the company's market value rose by Rs 4,104 crore to Rs 97,287 crore.

"For Q2 FY14, HCL Tech came out with better-than-expected set of results largely on all fronts," said Ankita Somani, Research Analyst - IT, Angel Broking.

"Overall, the company performed exceptionally well on the margins front and we continue to remain positive on the stock for a longer-term perspective keeping in notice the companys deal signing trajectory and healthy operating performance since last several quarters," she added.

Beating market estimates, HCL Technologies today posted a 58.4 per cent rise in profit for the quarter ended December 31, aided by growth in Europe and contracts won in financial services, infrastructure and manufacturing.

The firm's revenue crossed USD 5 billion in 2013, a first for the company.

HCL's profit rose to Rs 1,496 crore in the second quarter ended December 31 from Rs 944 crore in the year-ago period. The company follows a July-June financial year.

Consolidated revenue increased 30.4 per cent to Rs 8,184 crore from Rs 6,278 crore.

In the July-September quarter, the firm had reported a profit of Rs 1,416 crore and revenue of Rs 7,961 crore.