HCL Technologies Rises Nearly 4% After Profit Raise In 2nd Quarter
HCL Technologies shared 7% consolidated net profit of ₹3,489 for September quarter. After this IT company share prices surged 3.79% and hit the value of ₹ 987.75.
The day after reporting its September quarter earnings, the shares of Noida-based IT corporation HCL Technologies increased as much as 3.79 percent, reaching an intraday high of ₹ 987.75. In excess of market expectations, HCL Technologies reported a 7% increase in its unified net profit for the September quarter at Rs 3,489 crore on Wednesday. The company also increased its full-year revenue guidance, citing strong demand and a strong deal pipeline despite macroeconomic concerns.
HCL Tech claimed it had a “great quarter on all fronts,” generating solid performance in top line, despite widespread concerns about a worldwide recession. The IT services company increased sales projection to 13.5-14.5 percent for the full year, up from the earlier planned growth range of 12-14 percent, exuding confidence in its near- and medium-term development.
According to Vijayakumar, the confidence is consistent with the spending patterns and market trends that the company has observed. He also noted that, in a challenging economic climate, technology is typically seen as a “enabler” and mission-critical and conversion deals that lower costs are prioritized.
The revenue for the 3 months ending September 30, 2022, was Rs 24,686 crore, which was up 5.2% sequentially and 19.5% from the same time the previous year.
The revenue of $3,082 million was up 1.9% from quarter to quarter and 10.4% from year to year in terms of dollars. The revenue from services increased 5.3% sequentially and 18.9% year over year in constant currency.
Eight of the 11 significant contracts were for services, while three were for items.
The overall contract value bookings (new deal wins), among other headline measures, were up 16% from the June quarter and 6% from the same time last year, totaling USD 2,384 million.
For the financial year 2022–2023, the board announced an interim dividend of Rs. 10 per equity share.
Tata Consultancy Services and Infosys, two major rivals in the IT services sector, predict HCL Tech’s services revenue to increase 16–17% in constant currency for the entire fiscal year (FY23).