HCL Tech shares jump over 5%; hit 52-week high after Q3 earnings

Shares of HCL Technologies climbed over five per cent in the morning trade on Monday after the company reported a 6.2 per cent increase in consolidated net profit to ₹4,350 crore in the December quarter.

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The net profit was the highest ever on a quarterly basis, and was driven by growth in both services and software businesses.

The stock jumped 4.83 per cent to reach its 52-week high of ₹1,617.65 on the BSE.

At the NSE, it rallied 5.11 per cent to ₹1,619.60 -- its 52-week high.

IT stocks were in the limelight in morning deals, with Wipro, Tech Mahindra, Infosys, and Tata Consultancy Services also rising sharply.

The company had posted a consolidated net profit of ₹4,096 crore in the same period a year ago, HCL Tech said in a regulatory filing on Friday.

The consolidated revenue of HCL Tech grew 6.5 per cent to ₹28,446 crore during the reported quarter from ₹26,700 crore in the year-ago period.

"Our results this quarter have been remarkably strong with a revenue growth of six per cent on quarter-on-quarter in constant currency, driven by strong momentum in services and software businesses.

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"We delivered a stellar operating margin of 19.8 per cent, a 126 bps improvement quarter-on-quarter and 16 bps improvement year-on-year," HCL Tech CEO and Managing Director C Vijayakumar told reporters.

The company has projected a revenue growth in the range of 5-5.5 per cent in the current fiscal on a year-on-year basis.

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