HCL Technologies slips 4% on disappointing margin guidance for FY20

The company sees operating margin at 18.50 - 19.50 per cent in constant currency (CC) for the current fiscal.

HCL Technologies slipped 4 per cent to Rs 1,084 on the BSE during the early morning trade on Friday after the company announced a 100 basis point (bps) cut in the estimated operating margin (OM) for FY20 as against FY19. The company sees the OM at 18.50 – 19.50 per cent in constant currency (CC) terms for the current financial year. 

For FY19, the company’s EBIT (earnings before interest and tax) margin stood at 19.5 per cent.

“For FY20, revenue is expected to grow between 14 and 16.0 per cent in CC,” HCL Technologies said in FY20 guidance.

Analysts attributed