HCL Technologies climbs over 9% on Q2 revenue forecast

Shares of HCL Technologies Ltd climbed more than 9% in early trade on Monday after the IT services major said that it expects Q2 revenue and operating margin to be “meaningfully better” than the previous forecast.

The stock rose 9.28% to Rs789.35 on the BSE and 8.61% to Rs783.85 on the NSE.

The Noida-based company expects its revenue growth in constant currency terms to exceed 3.5% quarter-on-quarter (q-o-q) for the July-September 2020 period. In July, the company had forecasted its revenue to increase q-o-q by an average of 1.5-2.5% in constant currency for the next three quarters.

“We have seen strong execution during the quarter to date, and continue to execute to the plan this month,” HCL Technologies said.

“Good booking momentum continues this quarter, led by life sciences and healthcare, telecom and media and financial services verticals,” it added.

The EBIT (earnings before interest and taxes) percentage for the September quarter is expected to be between 20.5% and 21%, the company said.

For the April-June quarter of fiscal year 2020-21, HCL Technologies recorded 31.7% increase in consolidated net profit at ₹2,925 crore. Its revenue in the June quarter was up 8.6% year-on-year and down 4% q-o-q to Rs17,841 crore.

At 1:40 pm, shares of HCL Technologies were trading at Rs788 apiece, up 9.29%, on the BSE; and at Rs787.55 apiece, 9.13% higher, on the NSE.

The BSE Sensex index was at 38,971.37, up 0.30%; and the Nifty 50 index at 11,502.25, 0.33% higher.