HCL Tech Shares Surge 5% on Strong Earnings

New Delhi, Jul 15 (PTI) Shares of IT services company HCL Technologies on Monday morning climbed nearly 5 per cent after the company posted a 20.4 per cent rise in consolidated net profit at Rs 4,257 crore for the June-ended quarter and gave a revenue growth guidance of 3-5 per cent for FY25.

The stock rallied 4.83 per cent to Rs 1,635.85 on the BSE.

At the NSE, it jumped 4.88 per cent to Rs 1,636.40 a piece.

The company's market valuation went up by Rs 12,157.22 crore to Rs 4,35,597.52 crore during early deals.

The stock emerged as the biggest gainer among the BSE Sensex and NSE Nifty firms.

The 30-share BSE Sensex climbed 290.46 points to 80,809.80 in early trade. The NSE Nifty rallied 95.85 points to hit a new record peak of 24,598.

HCLTech on Friday posted a 20.4 per cent rise in consolidated net profit to Rs 4,257 crore for the June-ended quarter and gave a revenue growth guidance of 3-5 per cent for FY25 on GenAI diversification and strong operational execution.

For the fiscal's first quarter ended June 2024 (Q1 FY25), the revenue came in at Rs 28,057 crore, 6.6 per cent more than in the year-ago period. Seen sequentially, it was 1.6 per cent lower than the March quarter.

HCLTech CEO and MD C Vijayakumar said the Q1 revenue and EBIT (earnings before interest and taxes) performance was "slightly better than our expectations".

He said Q1 has been a seasonally soft quarter for HCLTech, but affirmed that the Noida-headquartered tech major will achieve its annual growth guidance.

"We stay with our full-year guidance of 3-5 per cent growth in constant currency. In the first quarter, we have done better than what we had anticipated. In the second quarter, we are confident of positive growth in spite of the revenue from State Street divestment going away, we will grow.

"We will grow across all geographies and verticals, except financial services," he said at the company's press conference.