HCL Technologies falls 12% in two days on weak FY19 revenue guidance

The stock dipped 7% to Rs 924 in early morning trade, extending its Wednesday's 5% fall on the BSE.

Shares of HCL Technologies have dipped 7% to Rs 924 per share on the BSE in early morning trade, extending their 5% fall on Wednesday as weak organic growth guidance raised concerns, according to analysts.

For the current financial year 2018-19 (FY19) HCL Tech has guided for constant currency (CC) revenue growth of 9.5%-11.5% (10.5%-12.5% in USD terms) and EBIT (earnings before interest and tax) margin guidance of 19.5%-20.5%.

“We note that FY19 revenue guidance factors inorganic contribution from acquisitions already made and future acquisitions planned for the year. These inorganic contributions would aid revenues by around 5.25%