Hcl Tech shares under pressure ahead of It Major results after Tcs disappointed Street


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To buy to sell HCL Technician to share

Shares of HCL Technologies struggled to reach green in choppy trading on Tuesday, as the Noida-based IT major was due to release its financial results for the April-June period later in the day. HCL Tech shares ended down Rs 15.4 or 1.6% at Rs 928.1 each on BSE.

Analysts will be watching HCL Tech’s earnings report closely, which comes days after TCS disappointed the street with its quarterly performance. IT companies are battling rising labor costs to cope with high levels of attrition even as companies in all industries spend heavily on technology.

Analysts in a CNBC-TV18 poll estimate HCL Tech’s net profit at Rs 3,297 crore for the April-June period – which would signify an 8.2% decline sequentially.

Hcl Tech shares under pressure ahead of It Major results after Tcs disappointed Street

HCL Tech’s dollar revenue is expected to grow 1.3% quarter on quarter, and 2.5 to 3% in constant currency.

The IT company’s earnings before interest and tax (EBIT) – a key measure of profitability – are expected to rise 1.3% in the April-June period from the previous three months.

HCL Tech is expected to report a 40 basis point drop in margin to 17.6%. That’s below the software services exporter’s forecast of 18-20% for the year ending March 2023.

Analysts expect HCL Tech to maintain a revenue growth forecast of 12-14% for the year ending March 2023.

First post: STI


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