Share of HCL Tech declined 3.5% to hit an intraday low of Rs 966 on NSE after the company reported weaker than expected results for the quarter ended June (Q1FY22).
The IT major reported a 9.4% increase in net profit on a year-on-year basis at Rs 3,213 crore compared to Rs 2,935 crore in the year-ago period. Revenue from operations stood at Rs 20,068 crore as against Rs 17,842 crore in Q1 FY21.
EBITDA (income with interest, taxes, depreciation, and amortisation) for Q1 FY22 stood at Rs 4,908 crore, a 12.5% growth on a YoY basis, while EBIT (earnings before interest and taxes) has been recorded at Rs 3,931 crore, a 7.4% rise on a YoY basis.
HCL Tech expects revenue to grow in double digits in constant currency for FY’22. EBIT margin is expected to be between 19% and 21% for the financial year.
The IT major has a strong long term fundamental strength with an average Return on Equity (ROE) of 22.94%.
HCL Technologies also informed that its founder Shiv Nadar has stepped down as the Managing Director of the company and has been appointed Chairman Emeritus and Strategic Advisor to the company’s board. Nadar, who was the MD and Chief Strategy Officer, tendered his resignation with effect from the close of business hours on July 19.
The company has declared a dividend of Rs 6 per share, and it’s the 74th consecutive quarter of dividend pay-out by the tech services company.
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