HCL Tech Q1 profit falls to Rs 2,925 crore; Shiv Nadar steps down as chairman

IT services company HCL Technologies on July 17 reported 7.3 percent QoQ fall in its June quarter net profit at Rs 2,925 crore, reported CNBC-TV18.

The company had a profit of Rs 3,154 crore in the March quarter.

The company has appointed Roshni Nadar Malhotra as chairperson of the company w.e.f. July 17, 2020.

Revenue from operations were down 4 percent in at Rs 17,841 crore versus Rs 18,590 crore reported in previous quarter.

The dollar revenue of the company fell 7.4 percent at USD 2,356 million versus USD 2,543.4 million, QoQ.

Earning before Interest and Tax (EBIT) was down 5.7 percent at Rs 3,660 crore versus Rs 3,881 crore, while margin was at 20.5 percent versus 20.8 percent, QoQ.

Company's constant currency (CC) growth was down 7.2 percent, QoQ.

The Board of Directors has declared an Interim Dividend of Rs 2  per equity share of Rs 2 each of the Company for the Financial Year 2020-21.

The record date of July 25, 2020 fixed for the payment of the aforesaid interim dividend has been confirmed by the board of directors. The payment date of the said interim dividend shall be August 7, 2020.

Company expect QoQ revenue to increase by an average of 1.5% to 2.5% in CC for next 3 quarters and expecting operating margin to remain between 19.5% and 20.5% for FY21.

The share price rose more than 36 percent in last 3 months.

The share touched its 52-week high Rs 652.20 and 52-week low Rs 375.50 on 16 July, 2020 and 19 March, 2020, respectively.

On the daily and weekly charts stock has formed a strong promising price volume breakout formation that indicates bulls are clearly dominating the price action.

For the breakout traders, Rs 600 and Rs 585 would be the key levels to watch, the overall chart structure suggests if the stock sustained above the same then the breakout continuation texture likely to continue up to Rs 700.