Street cheers up on HCL Tech Q4 earnings; stock jumps over 3%

HCL Technologies shares jumped over 3% in the opening trade on Friday, reacting to the broadly in-line quarterly results posted by the company on Thursday.

The shares were trading 1.91% higher at Rs 1,057.35 on NSE at 9:20 am.

HCL Technologies reported a consolidated net profit of Rs 3,983 crore for the quarter ended March. This is an increase of 11% from Rs 3,593 crore clocked in the corresponding period of last year. The net profit beat the ET Now poll estimate of Rs 3,860 crore.


Meanwhile, on a sequential basis, net profit fell 3% from Rs 4,096 crore reported in the preceding December quarter.

Revenue from operations rose 18% to Rs 26,606 crore for the fourth quarter under review, compared with Rs 22,597 crore in the same period last year.

Meanwhile, top brokerages have come out with their views on the tech major. While Morgan Stanley remains ‘Overweight’, JP Morgan retained its ‘Underweight’ stance on the third-largest Indian IT company by market capitalisation.

Morgan Stanley cut its target on HCL Tech from Rs 1,200 to Rs 1,160. It said that it finds FY24 revenue guidance aggressive while noting that the company missed revenue growth and margins in Q4.

JP Morgan holds an ‘Underweight’ stance on HCL and has cut its target from Rs 920 to Rs 880. It has also cut its revenue and margins estimates by 20/30 bps, driving 3%/5% EPS cuts over FY24/25E. FY24 guidance is weak and below consensus, the brokerage firm said.

The Board of Directors declared an interim dividend of Rs 18 per equity share of the company for the financial year 2023-24.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)