The earnings season is back with large IT companies being the first one to report their Q1 results.
Last week, IT bellwether Tata Consultancy Services (TCS) reported mixed numbers and faced the brunt.
TCS share price fell 5% on Monday this week as the company had more than just the attrition worries to report.
Other IT companies followed suit and fell that day as that is the trend IT stocks follow. If the biggest company has nothing decent to report and only concerns, the cascading effect is usually seen in other IT majors too.
Not just because of the results, IT stocks are falling due to recession concerns.
Keeping that in mind...another IT major reported its Q1 results post market hours yesterday.
Ranked among India's top four IT companies, HCL Tech reported its results and guess what...it had nothing exceptional to report.
Among other things, investors were closely tracking the management's commentary on demand environment, margins and attrition rate.
Deal wins and deal pipelines were other things investors were waiting for.
Here are five takeaways from HCL Tech's Q1 results.
Not very good.
On similar lines with major IT companies, HCL Tech share price has faced the brunt and is trading at its 52-week low.
Ahead of its results yesterday, shares of the IT company dipped 2%.
Today, the stock fell another 2% and touched a new 52-week low.
HCL Tech has a 52-week high quote of Rs 1,377 touched on 24 September last year while it has a 52-week low quote of Rs 905 touched today.
On a YTD basis, shares of the company are down a whopping 31%.
HCL Technologies is an Indian multinational information technology (IT) services and consulting company, headquartered in Noida, Uttar Pradesh, India. It's a subsidiary of HCL Enterprise.
Originally a research and development division of HCL, it emerged as an independent company in 1991 when it entered into the software services business.
It operates across sectors including aerospace, defence, automotive, banking, chemical and process industries, energy, and utilities.
For more details about the company, you can have a look at HCL Technologies factsheet and quarterly results on our website.
You can also compare HCL Technologies with its peers.
HCL Technologies vs Tech Mahindra
Also check out the in-depth comparative analysis where we dig deeper and compare the biggest IT companies in India:
HCL Tech vs L&T Infotech: Which IT Stock is Better?
TCS vs HCL Tech: Which IT Stock is Better?
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...
Yash Vora is a financial writer with the Microcap Millionaires team at Equitymaster. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.
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