HCL Tech management cautious on revenue growth in FY23; stock plunges 6%

Shares of HCL Technologies tumbled 5.8 per cent to Rs 1,037 apiece in Friday’s intra-day trade, after the company said it expected revenue in financial year 2022-23 (FY23) to come in near the lower end of the guidance band.

At its investor meeting held in New York on December 8, the management said the revenue growth guidance for FY23 is likely to come in at the lower end of its 13.5-14.5 per cent year-on-year band in constant currency (CC) terms due to higher-than-expected furloughs in BFSI and Hi-Tech segments.

According to analysts at Nirmal Bang, this doesn’t seem to be an industry-wide problem and not an HCL Tech specific one. However, it believes that December 2022 and possibly March 2023 are likely going to be growth challenged quarters for the industry; may be a bit more than earlier anticipated.