Shares of HCL Technologies fell over 2 per cent in the early trade on Thursday after the company reported lower-than-expected financial results for the third quarter ended March 2016.
The IT major posted 0.3 per cent quarter-on-quarter (qoq) rise in its consolidated net profit figures at Rs 1,926 crore in Jan-March 2016 period. Revenue of the IT company jumped 3.4 per cent qoq at Rs 10,698 crore.
At 10.06 am, HCL Tech was trading 2.30 per cent down at Rs 818.45 on BSE. The scrip opened at Rs 805 and has touched a high and low of Rs 821.90 and Rs 799, respectively, in trade so far. The share price of the company closed 4.51 per cent down at Rs 799.95.
Sarabjit Kour Nangra, VP Research- IT, Angel Broking, said, “On the operating front, the EBIT came in at 20.7 per cent in line with expectations. HCL Tech signed 7 transformational deals this quarter with TCV of more than $2bn, taking the number of transformational engagements during the nine month financial year to 25, with TCV of more than $ 4bn. These wins were broad–based across service lines and industry verticals, led by next–generation offerings – BEYONDigital, IoT WoRKS and Next–Gen ITO. We maintain our ‘Buy’ rating with a price target of Rs 1,038.”
According to a brokerage house such Angel Broking, the net profit was expected to come in at Rs 1,936 crore against Rs 1,920 crore in the second quarter ended December 2015, a QoQ growth of 0.8 per cent.
The Noida-based firm follows the July-June fiscal. HCL also announced a dividend of Rs 6 per share.