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HCL Tech firms up after acquisition

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Capital Market
Last Updated : Jun 27 2018 | 12:16 PM IST

HCL Technologies rose 1.32% to Rs 921.30 at 11:57 IST on BSE after the company said it signed a definitive agreement to acquire Germany-based IT and engineering services provider, H&D International Group.

The announcement was made during trading hours today, 27 June 2018.

Meanwhile, the S&P BSE Sensex was down 47.50 points, or 0.13% to 35,442.54.

On the BSE, 2.23 lakh shares were traded in the counter so far compared with average daily volumes of 3.71 lakh shares in the past two weeks. The stock had hit a high of Rs 923 and a low of Rs 910 so far during the day. The stock hit a record high of Rs 1,106.60 on 23 April 2018. The stock hit a 52-week low of Rs 825.10 on 4 December 2017.

The acquisition is part of HCL's long-term growth plan in Germany. This landmark deal sees HCL attain significant in-country front office and delivery capabilities and will further enhance the company's domain expertise in the global automotive sector, HCL Technologies said in a statement.

The H&D International Group is one of the largest IT service providers in the German automotive industry, and operates in over 20 locations globally including; Germany, the USA, the Czech Republic and Poland. H&D specialises in IT Infrastructure, application services particularly in R&D IT, shop floor IT and Industry 4.0 solutions and has extensive expertise in SAP, computer-aided technologies (CAx), engineering services and customer-specific product development, it added.

H&D's existing delivery center in Gifhorn, Germany, will become part of HCL's global delivery footprint and will focus on IT and engineering services both in Germany and globally.

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On a consolidated basis, HCL Technologies' net profit rose 7.47% to Rs 2230 crore on 2.88% increase in net sales to Rs 13178 crore in Q4 March 2018 over Q3 December 2017.

HCL Technologies (HCL) is a global technology company.

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First Published: Jun 27 2018 | 12:02 PM IST

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