HCL Technologies Slips 2% After June Quarter Results

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Jul 20, 2021 - HCL Technologies Slips 2% After June Quarter Results

HCL Technologies Slips 2% After June Quarter Results

Jul 20, 2021

Shares of HCL Technologies were down 2.5% on the BSE today after the company's results for the June 2021 quarter missed street estimates.

The company reported muted earnings compared to its peers with the topline growing by a mere 0.7% quarter on quarter (QoQ) in constant currency terms.

It also reported a 2.2% rise in consolidated revenues for the quarter at Rs 200.7 bn, which was slightly below analysts' expectations.

On the operating front, the quarter was tough for the company as consolidated operating profit slumped 5.3% sequentially due to the impact of wage hikes. Further, its consolidated operating margin shrank 1.6% sequentially to 24.5%.

While the top line fell a little short, the company's consolidated net profit met street estimates. HCL Technologies reported an 8.5% sequential rise in consolidated net profit at Rs 32 bn.

The board declared an interim dividend of Rs 6 per equity share for the financial year 2022.

--- Advertisement ---
No crash, correction, or pandemic can STOP This...

At last, it's happening...

Right here in India...three hidden mega-trends are converging for the first time ever to trigger an economic boom of unparalleled proportions.

A boom so powerful - no crash, no correction, and no pandemic can STOP India from becoming the next economic superpower...

And those who take advantage of this mega shift could potentially generate massive wealth for themselves and their families in the long run.

We are talking about potential 1,000% gains...and perhaps even more over the long term.

But trust me, people who pass this opportunity will regret their decision in the years and decades to come...

So, if you want to save yourself from potential downsides of this mega shift...

...and instead, leverage on it for potential windfall gains...

Join us on 24th September at my special event...

Put your email in the box below and get your free ticket right away.

Strong deal momentum to support revenue growth

HCL said that it expects its revenues to grow in double digits in the current financial year in constant currency terms.

The company also sees its operating margin in the band of 19-21%.

The deal momentum in the quarter remained firm for the IT services company as the deal book grew 37% year on year (YoY) to US$1.7 bn aided by eight large service deals.

HCL saw the addition of eight clients in the US$50 m bracket, 11 in the US$20 m bracket and 10 in the US$10 m bracket.

HCL Technologies Client Breakup (June 2017- June 2021)

The company's exposure to deeply troubled verticals such as energy, transportation, travel, hospitality, and retail are lower versus its peers, which bodes well for it in the near term.

It has a higher exposure to financial services, technology services, and life sciences, where there is a better outlook.

Higher exposure to Infrastructure Management Services or IMS (37% of revenue), comprising a larger share of non-discretionary spend, also offers a better resilience to its portfolio in the current context, with increased demand for cloud, network, security, and digital workplace services.

--- Advertisement ---
INSIDER SECRET: An Astonishingly Easy Way to Pile Up Potentially 40-60% Gains in Just 1 Year

India's most well-connected trader with over 35 years of experience just confessed...

"This Lucrative Market Segment Could Leapfrog Over Nifty in The Next 12-16 Months"

... thanks to a massive and irreversible mega-trend fueling its growth!

In fact, he and his partner have already identified 2 spectacular stocks from this segment... which are ready to rake in potentially 40-60% gains in just 1 year... and make you big, fat profits!

The best part of them all...

Their Details Are Packed in This Special Report (Discover How to Claim it for Free)

Shiv Nadar resigns as MD, named Chairman Emeritus

HCL Technologies said its founder Shiv Nadar has tendered his resignation with effect from 19 July 2021.

He will take on the role of Chairman Emeritus and Strategic Advisor to the company's board.

The payment of remuneration or providing any facilities under this role will be subject to the approval of the shareholders.

The company has appointed C Vijayakumar as President and CEO of the company, and as managing director for five years with effect from 20 July.

In a separate regulatory filing, the company said that it has appointed former IBM executive, Vanitha

Narayanan, to the board of directors.

Equitymaster's view on investing in the IT sector right now...

We reached out to Richa Agarwal, senior research analyst and editor of the smallcap stock recommendation service, Hidden Treasure, for her view on the IT sector.

Here's what she has to say about investing in companies in the IT sector right now -

  • Post pandemic, amid liquidity in the global markets and broad-based growth momentum, the IT sector and the stocks listed in it have had a dream run.

    The BSE IT index is at a ten year high, up 70% from the pre-Covid highs.

    While picking stocks in the industry, one should be mindful of relative growth and valuation of companies in the sector.

REVEALED: 3 "Super Smallcaps" You Didn't Know About

How the markets reacted to HCL Tech's June quarter results today...

Shares of the company opened the day lower at Rs 991 on the BSE and Rs 999 on the NSE today after the company declared its results post market hours yesterday. The scrip then later fell over 2% on the exchanges.

The share touched its 52-week high of Rs 1,073.3 and a 52-week low of Rs 627 on 13 January 2021 and 20 July 2020.

Over the last 30 days, the share price of HCL Technologies has remained flat. In the year to date also, the share price has moved up by only 3.1%.

About HCL Technologies

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.

The company has offices in 32 countries including United Kingdom, United States, France, and Germany with a worldwide network of R&D, innovation labs, and delivery centres.

It has over 160,000 employees and its customers include 250 of the Fortune 500 and 650 of the Global 2,000 companies.

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 Wipro

HCL Technologies vs TCS

HCL Technologies vs Infosys

HCL Technologies vs Tech Mahindra

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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...

Ayesha Shetty

Ayesha Shetty is a financial writer with the StockSelect team at Equitymaster. An engineer by qualification, she uses her analytical skills to decode the latest developments in financial markets. This reflects in her well-researched and insightful articles. When she is not busy separating financial fact from fiction, she can be found reading about new trends in technology and international politics.

Equitymaster requests your view! Post a comment on "HCL Technologies Slips 2% After June Quarter Results". Click here!


More Views on News

Why Did HCL Tech Shares Plunge Today? (Company Info)

Apr 26, 2021

Key takeaways from HCL Technologies Q4FY21 results.

HCL TECHNOLOGIES Announces Quarterly Results (3QFY21); Net Profit Up 35.1% (Quarterly Result Update)

Jan 18, 2021 | Updated on Jan 18, 2021

For the quarter ended December 2020, HCL TECHNOLOGIES has posted a net profit of Rs 40 bn (up 35.1% YoY). Sales on the other hand came in at Rs 193 bn (up 6.4% YoY). Read on for a complete analysis of HCL TECHNOLOGIES's quarterly results.

HCL TECHNOLOGIES 2019-20 Annual Report Analysis (Annual Result Update)

Dec 29, 2020 | Updated on Dec 29, 2020

Here's an analysis of the annual report of HCL TECHNOLOGIES for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of HCL TECHNOLOGIES. Also includes updates on the valuation of HCL TECHNOLOGIES.

This Indian Company is Tapping into the Huge Autonomous Driving Opportunity (Views On News)

Sep 14, 2021

Despite many challenges, Indian companies and startups have not shied away from entering this space.

4 Indian Companies in the Exploding Drone Market (Views On News)

Sep 1, 2021

The futuristic drone industry in India holds immense promise now that the government has come out with new rules.

More Views on News

Most Popular

Differences Between Trading and Investing

A simple to guide to understand the difference between investing and trading

Sansera Engineering IPO: Key Points to Consider (Views On News)

Sep 8, 2021

This IPO is a pure OFS and the company is looking to raise Rs 12.8 bn at the upper price band of Rs 744.

5 Stocks that Turned Rs 1 Lakh into Rs 1 Crore (Views On News)

Sep 7, 2021

Patience is one of the biggest virtues you need to have if you want to become a crorepati in the stock market.

The Top Stocks to Sell in this Bull Market (Profit Hunter)

Sep 8, 2021

When I saw the list of so-called 'value stocks' published by a leading brokerage, my worst fears came true.

5 Indian Companies that are Leading the AI Race (Views On News)

Sep 9, 2021

During the pandemic, India reported the highest increase in the use of AI at 45% compared to other major economies. AI has potential to add US$90 bn to the Indian economy by 2025.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2021
Get our special report Multibagger Stocks Guide (2021 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Sep 17, 2021 (Close)


  • Track your investment in HCL TECHNOLOGIES with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks