HCL Tech shares tumble 9 pc; market valuation erodes by Rs 46,485 cr post earnings announcement

New Delhi, Jan 14 (PTI) Shares of IT company HCL Tech on Tuesday ended nearly 9 per cent lower after the company’s December quarter earnings failed to cheer investors.

The stock slumped 8.63 per cent to settle at Rs 1,813.95 apiece on the BSE. During the day, it tanked 9.41 per cent to Rs 1,798.40.

On the NSE, it dropped 8.51 per cent to Rs 1,819.95 per share.

The stock emerged as the biggest laggard among the BSE Sensex and NSE Nifty firms.

Its market valuation eroded by Rs 46,485.08 crore to Rs 4,92,245.28 crore.

In volume terms, 3.57 lakh shares of the firm were traded on the BSE and 158.19 lakh shares on the NSE during the day.

“HCLT’s 3Q numbers and 4Q guidance were underwhelming,” according to Motilal Oswal Research.

Other IT stocks like Tech Mahindra, Infosys and Tata Consultancy Services also ended lower.

“HCL Tech reported decent revenue growth of 3.8 per cent q-o-q (quarter-on-quarter) in cc but missed our estimates of 4.8 per cent q-o-q in cc with largely broad performance across geos and verticals,” Shaji Nair, Research Analyst – Capital Market Strategy at Mirae Asset Sharekhan, said.

IT company HCL Tech on Monday reported a 5.54 per cent uptick in consolidated net profit to Rs 4,591 crore for the December quarter as the CEO expressed optimism for improvement in the demand environment and discretionary spending and raised the revenue growth guidance.

The Noida-headquartered firm had reported a profit of Rs 4,350 crore in the year-ago period, according to a regulatory filing.

The company raised the lower end of its growth guidance to 4.5-5 per cent, from 3.5-5 per cent earlier.

Revenue from operations for the quarter under review came in at Rs 29,890 crore, 5.07 per cent higher than Rs 28,446 crore in the third quarter of the current fiscal year.

Sequentially, profit and revenue rose 8.4 per cent and 3.56 per cent, respectively.