HCL Infosystems Soars 20% As Q4 Net Surges 150%

Mumbai, September 23: | Updated: Sep 24 2003, 05:30am hrs
The share price of HCL Infosystems Ltd surged sharply by 20 per cent on BSE on account of a 150 per cent jump in net profit in the fourth quarter (Q4) results.

The stock opened at Rs 217.80, went on touch a high of Rs 261.75 and settled at the days of Rs 261.75 on BSE. On the NSE the stock price appreciated even higher by 26.44 per cent to close at Rs 260.90 as against its earlier close of Rs 206.35. HCLIL touched a low of Rs 212.60 on BSE while on NSE it dropped to Rs 212.05. A total of 16,39,231 shares changed hands on BSE whilst on NSE it clocked total traded volumes of 50,68,422 shares.

Market analysts said that the software sector is getting re-rated as major frontline companies have bagged big overseas business process outsourcing (BPO) contracts although the pressure on margins continues to remain.

Said an analyst, The fourth quarter results of the company have been good with the company recording a net profit of Rs 23.70 crore as compared with Rs 8.60 crore for the fourth quarter of last year.

Said a BSE broker, The sector is getting re-rated as companies including Infosys, Wipro, Satyam and HCL Info have huge orders in the pipeline and they have even begun recruiting in a big way. The business is growing although the margins are squeezed.