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HCL Tech shares drop 4.5 pc post Q4 results

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Press Trust of India New Delhi
Last Updated : May 10 2019 | 4:41 PM IST

Shares of HCL Technologies fell 4.5 per cent Friday despite the company posting a 14.3 per cent rise in consolidated net profit for the March 2019 quarter.

The scrip declined 4.07 per cent to close at Rs 1,086.05 on the BSE. Intra-day, it dropped 5 per cent to Rs 1,074.45.

On the NSE, shares plunged 4.53 per cent to close at Rs 1,085.05.

The company's market valuation declined by Rs 6,245.33 crore to Rs 1,47,298.67 crore on the BSE.

On the traded volume front, 2.07 lakh shares changed hands on the BSE and over 77 lakh shares on the NSE.

The results were announced after trading hours on Thursday.

"HCL Tech Q4 FY19 results were a mixed bag with revenue beat negated by EBIT (earnings before interest and taxes) margin miss," as per a report by Centrum Broking Research.

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The IT services major posted a 14.3 per cent rise in consolidated net profit at Rs 2,550 crore for the March 2019 quarter and set an 'aspirational' annual revenue target of more than USD 10 billion (about Rs 70,258 crore) for 2019-20.

The company's revenue grew 21.3 per cent to Rs 15,990 crore for the quarter as against Rs 13,178 crore in the year-ago period, as per Ind-AS accounting norms.

For 2018-19, net profit rose 16 per cent to Rs 10,120 crore, while revenue grew 19.4 per cent to Rs 60,427 crore (about USD 8.6 billion) from 2017-18.

The Noida-based company has forecast its revenue to grow between 14-16 per cent on constant currency basis this fiscal. This translates into a topline in the range of about USD 9.83-10.01 billion.

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First Published: May 10 2019 | 4:41 PM IST

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