HCL Tech shares slip as Street cautious on lowered revenue guidance; brokerages mixed
HCL Tech Share Price NSE: The Noida headquartered company reported 19 per cent increase in its consolidated net profit at Rs 4,096 crore.
HCL Tech Share Price NSE: HCL Tech shares fell more than 1.50 per cent to Rs 1054.75 on Friday on profit booking a day after the IT major reported a higher-than-expected profit for the December quarter. Despite beating the Street estimates, the counter opened at Rs 1,043.90, down by 2 per cent from the previous day close of 1,071.65.
The Noida headquartered company reported 19 per cent increase in its consolidated net profit at Rs 4,096 crore. It had posted a net income of Rs 3,442 crore a year ago. The profit was boosted by strong deal wins. However, the company lowered guidance and full-year revenue view, noting seasonal challenges in the next quarter.
HCL Tech's profit after tax (PAT), on sequential basis, jumped 17 per cent from Rs 3,489 crore in second quarter.
HCL Tech Dividend
The company has also announced an interim dividend of Rs 10 per equity share. It has fixed January 20 as record date. The dividend amount will be paid to the shareholders on February 1.
Brokerages have a mixed view on HCL Tech after the company released its Q3 earnings.
Global brokerage firm CLSA said that Q3 numbers are well ahead of estimate on all counts. The brokerage said that management is optimistic about sustaining momentum in 4QFY23, which should give a strong base for FY24. Further, the brokerage called 4.3 per cent dividend yield attractive.
JP Morgan has maintained an 'underweight' rating and raised its target price to Rs 880 from Rs 850. The brokerage said the print is solid, guide reiterates sharp moderation. Print is largely ahead, led by high seasonality in its P&P business, pulled back by soft IT growth momentum, the brokerage noted.
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Further, the brokerage said, "Headline margins were sharply ahead, led entirely by P&P nonlinearity that should reverse in 4Q."
HSBC has tagged a 'buy' call on the counter with a target price raised to Rs 1230 from Rs 1220.
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