HCL Technologies (HCLTECH) shares were in demand on Dalal Street on Friday, a day after the IT major reported a better-than-expected net profit for the quarter ended March 2023. The stock of HCL Tech — India's third largest IT services firm after Tata Consultancy Services (TCS) and Infosys — gained by as much as Rs 36.3 or 3.5 per cent to Rs 1,073.9 apiece on BSE in early deals. 

What Anil Singhvi makes of HCL Tech Q4 results

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Zee Business Managing Editor Anil Singhvi said there was "nothing great and nothing bad" in HCL Tech Q4 results. He pointed out a number of downgrades by brokerages, though he acknowledged the company's deal pipeline and guidance. 

HCL Tech Q4 results: Summary 

After market hours on Thursday, HCL Technologies reported a 2.8 per cent decline in net profit to Rs 3,983 crore on a quarter-on-quarter basis. Its revenue, in rupee terms, declined 0.4 per cent sequentially to Rs 26,606 crore.

The company's top-line came in slightly better than analysts' expectations whereas bottom-line was in line. According to Zee Business research, the IT major's quarterly net profit was estimated at Rs 3,850 crore and revenue at Rs 26,606 crore. 

Revenue in dollar terms contracted 0.3 per cent to $3,235 million compared with the quarter ended December 2022. 

The company's margin shrank by 150 basis points sequentially to 18.1 per cent, as against the analysts' estimate of 18.4 per cent.

What brokerages make of HCL Tech Q4 results

Brokerage  Rating Target price
CLSA  Outperform  Rs 1,200 
Morgan Stanley  Overweight  Cut to Rs 1,160 from Rs 1,200
JPMorgan  Underweight  Cut to Rs 880 from Rs 920
Citi  Neutral  Reduced to Rs 1,035 from Rs 1,045
Jefferies  Hold  Reduced to Rs 1,125 from Rs 1,050
Nomura  Neutral  Lowered to Rs 1,100 from Rs 1,150
Macquarie  Outperform  Rs 1,580 

(This story will be updated shortly)

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