HCL Tech Shares Tumble 9% After Muted Q3 Earnings Report
14th Jan 2025
HCL Tech's Q3 Financial Performance
In a knee-jerk reaction to its quarter earnings for the December 2024 quarter, shares of HCL Technologies Ltd cracked more than 9 per cent during the trading session on Tuesday. The IT major reported a 5.5% year-on-year rise in net profit at Rs 4,591 crore, while revenue from operations grew 5.07% to Rs 29,890 crore.
Guidance and Outlook Updates
HCL Tech has updated its full-year revenue growth guidance in constant currency (CC) terms, increasing the lower end by 100 bps to 4.5-5%. The company has retained its EBIT margin guidance at 18-19% for the fiscal year. The IT solutions provider also declared an interim dividend of Rs 18 per equity share, including a special dividend of Rs 6 per share to celebrate 25 years of its public listing.
Analyst Commentaries and Recommendations
While Kotak Institutional Equities has a 'reduce' rating on the stock with a fair value of Rs 1,760, Nirmal Bang Institutional Equities has a 'buy' rating and a higher target price of Rs 2,282. Nuvama Institutional Equities has downgraded the stock to 'hold' with a target price of Rs 2,150. Among global brokerages, Nomura has a 'buy' rating with a target price of Rs 2,000, while Morgan Stanley has maintained an 'equal-weight' rating with a target price of Rs 1,970.
In a knee-jerk reaction to its quarter earnings for the December 2024 quarter, shares of HCL Technologies Ltd cracked more than 9 per cent during the trading session on Tuesday. The IT major reported a 5.5% year-on-year rise in net profit at Rs 4,591 crore, while revenue from operations grew 5.07% to Rs 29,890 crore.
Guidance and Outlook Updates
HCL Tech has updated its full-year revenue growth guidance in constant currency (CC) terms, increasing the lower end by 100 bps to 4.5-5%. The company has retained its EBIT margin guidance at 18-19% for the fiscal year. The IT solutions provider also declared an interim dividend of Rs 18 per equity share, including a special dividend of Rs 6 per share to celebrate 25 years of its public listing.
Analyst Commentaries and Recommendations
While Kotak Institutional Equities has a 'reduce' rating on the stock with a fair value of Rs 1,760, Nirmal Bang Institutional Equities has a 'buy' rating and a higher target price of Rs 2,282. Nuvama Institutional Equities has downgraded the stock to 'hold' with a target price of Rs 2,150. Among global brokerages, Nomura has a 'buy' rating with a target price of Rs 2,000, while Morgan Stanley has maintained an 'equal-weight' rating with a target price of Rs 1,970.