HCL Tech hits record high on stellar Q3 earnings

Shares in HCL Technologies rose as much as 3.5 percent to a record high of Rs 1,377 after the company reported December-quarter consolidated net profit rose more than expected.

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HCL Technologies said earlier in the day its consolidated net profit for October-December rose by 58.4 percent to Rs 1496 crores, compared with the average estimate of Rs 1422 crore.

HCL Technologies was up 2.6 percent at 9.29 a.m., outperforming a 0.2 percent gain in the broader Nifty.

Earnings from IT companies were expected to be strong this quarter, thanks to the rupee depreciation, even as the December quarter is considered seasonally weak.

But HCL delivered strong growth even in dollar revenue, which rose 4 percent sequentially to $1,321 million, against the street’s expectations of 3.3 percent. This topped Infosys’ dollar revenue growth that came in last week at 1.6 percent for the quarter.

Agencies