1. HCL Technologies shares gain on better-than-expected Q1 results; should you buy?

HCL Technologies shares gain on better-than-expected Q1 results; should you buy?

HCL Technologies reported 6 per cent rise in consolidated net profit at Rs 2055.20 crore for the quarter ended June 30, 2016 against Rs 1939.89 crore in the sequential quarter ended March 31, 2016.

By: | New Delhi | Updated: August 3, 2016 4:58 PM
HCL Technologies shares HCL Technologies reported 6 per cent rise in consolidated net profit at Rs 2055.20 crore for the quarter ended June 30, 2016 against Rs 1939.89 crore in the sequential quarter ended March 31, 2016. (Photo: Reuters)

HCL Technologies shares gained over 3 per cent on Wednesday after the company reported 6 per cent rise in consolidated net profit at Rs 2,055.20 crore for the quarter ended June 30, 2016 against Rs 1939.89 crore in the sequential quarter ended March 31, 2016. Revenue of the IT company jumped by 5.96 per cent quarter on quarter to Rs 11,336.32 crore for the quarter under review against Rs 10698.64 crore in the previous quarter ended March 31, 2016.

In a separate filing, the company also informed bourses that the board of the company at its meeting held on August 3, 2016, has declared an interim dividend of Rs 6 per equity share of Rs 2 each of the company for the financial year 2016-17. The payment date of the said interim Dividend shall be August 19, 2016.

According to Angel Broking, HCL Technologies posted better than expected Q1FY17 numbers on all fronts. The brokerage house maintained ‘Buy’ rating on HCL Tech shares post Q1 results. HCL Technologies shares gained as much as 8.54 per cent in the early trade on Wednesday after the announcement of quarterly results.

During April-June period, total expenses of the company jumped to Rs 550.04 crore from Rs 459.34 crore in the same quarter last year. HCL Technologies also announced the appointment of Nishi Vasudeva as an independent director on its board.

On a standalone basis, HCL Technologies reported net profit of Rs 1799.29 crore for the quarter ended June 30, 2016 against Rs 1671.51 crore in the sequential quarter ended March 31, 2016.

 

Shares of the company closed 3.16 per cent up at Rs 825.90. Brokerage firm Prabhudas Lilladher has ‘Accumulate’ rating on HCL Technologies shares with target price of Rs 890.

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