Shares of software firm HCL Technologies received a severe hammering at the hands of investors in early trade Thursday, crashing nearly 15 percent, after the company signaled that July-September topline growth will be disappointing.
In its pre-quarter earnings brief note to investors and analysts announced a day before, the company pointed that tepid revenue growth will be due to adverse currency impact, client specific issue and complex engagement particularly in infrastructure services.
In the wake of a sharp drop in multiple currencies against the US dollar in the last quarter, HCL Tech said the outcome is expected to result in an 80 basis points crack in its dollar-denominated revenues.
Also, with regards to an issue with a specific client in the public services vertical, the company said it is looking at setting aside $20 million this quarter due to certain differences with reference to program objectives.
At 10 am, HCL Technologies stock was traded at Rs 894.75, down 8.5 percent from previous close, after having tumbled to a low of Rs 837.20. Around 3.6 lakh shares changed hands on BSE as against two-week average volumes of just 85,000 shares. The stock even underperformed the broader BSE IT index, which rose 0.4 percent in early trade.
Updated Date: Oct 01, 2015 10:06:21 IST