HCL Technologies shares soared as much as 12 per cent to register a record high on Monday, after the IT major revised upwards its outlook for the current quarter, which ends on September 30. HCL Tech’s stock price climbed by Rs 86.75 – or 12.03 per cent – to an all-time high of Rs 807.80 apiece on the BSE during the session, having started the day mildly stronger at Rs 739 compared to its previous close of Rs 721.05. HCL Tech shares led the IT stocks higher, pushing the Nifty IT index also to a record high. (Track HCL Tech Shares)
HCL Technologies was the biggest percentage gainer on the Nifty, after the company upgraded revenue and operating margin outlook for the September quarter.
In a regulatory filing before market hours on Monday, HCL Tech said it expects its revenue and operating “to be meaningfully better than the top end” of the guidance provided in July 2020.
While posting its financial results for the April-June period in July, HCL Tech had guided for a revenue increase to the tune of 1.5-2.5 per cent sequentially over the next three quarters, and said it expected its operating margin between 19.5 per cent and 20.5 per cent for the current financial year.
HCL Tech said on Friday that it has seen “strong execution” during the quarter to date, and its revenue is expected to grow more than 3.5 per cent on a quarter-on-quarter basis in the July-September period, in constant currency terms. The revenue growth will be “enabled by broad-based momentum across all service lines, verticals and geographies”, HCL Tech said.
HCL Technologies said it expects its EBIT or earnings before interest and taxes to be between 20.5 per cent and 21.0 per cent in the current quarter.
At 1:42 pm, HCL Tech shares traded 9.30 per cent higher at Rs 788.10 apiece on the BSE, sharply outperforming the benchmark S&P BSE Sensex index which was up 0.36 per cent.
For the quarter ended June 30, HCL Technologies had reported a 7.59 per cent decline in net profit to Rs 2,931 crore compared to the previous quarter, over a 4 per cent drop in its revenue from operations to Rs 17,842 crore.