HCL Tech shares gain 5% on strong revenue growth in June quarter

Shares of HCL Technologies gained 5 per cent to Rs 1,074 apiece on the BSE in the intra-day trade on Thursday after the company posted double-digit revenue growth in the first quarter of the financial year 2019-20 (Q1FY20). In constant currency (CC) terms, the company’s revenue grew 17 per cent year-on-year (YoY) and 7.7 per cent on sequential basis.

The information technology (IT) firm maintained its revenue guidance of 14-16 per cent in CC term and margin guidance of 18.5-19.5 per cent for the quarter under review, as it expects revenues flow from the IBM IP (intellectual property) deal from second quarter onwards.

The company’s consolidated net profit, however, declined 7.6 per cent YoY and 13.5 per cent QoQ at Rs 2,220 crore, against an average analysts’ estimate of Rs 2,344 crore.