Earnings Worries Take Toll On HCL Tech Stock

Mumbai, April 24: | Updated: Apr 25 2002, 05:30am hrs
Front-line software stock, HCL Technologies slipped sharply on Wednesday, extending its losses for the second consecutive day on apprehensions of the firm’s future earning numbers.

An analyst said: “The third quarter to March 31, 2002, of the company was much below our expectations”.

Share prices of HCL Tech fell to Rs 239.45, down Rs 7.75 on a volume of 5.72 lakh shares on The Stock Exchange, Mumbai (BSE).

HCL Tech on Wednesday opened at Rs 246 and hit a intra-day low of Rs 237.50. The stock on Tuesday, following the earning number announcement had slipped Rs 3.90 on the BSE.

For the third quarter ended March 31, 2002, HCL annouced a net profit of Rs 131.2 crore compared to Rs 129 crore in the year-ago quarter. Income of HCL during the same period, however, rose to Rs 409 crore against Rs 363.2 crore in the corresponding quarter.

An analyst said: “There are a lot of negatives attached to HCL Technologies presently, ranging from slipping margins... areas in which they are operating are not doing well globally”.

HCL Technologies Ltd’s chairman, Shiv Nadar on Tuesday said: “We are getting off the guidance game. We are giving more disclosure so that the financial community can make its own judgement”.