HCLTECH SHARES PLUNGE OVER 6% AFTER Q4 RESULTS. HERE'S WHY
HCL Technologies (HCLTech) shares plunged up to 6.3% on Monday, marking its largest drop in nearly 17 months.Â
The stock, however, managed to recover slightly, trading 5.62% lower at Rs 1,389.50 by 12.06 pm on the Bombay Stock Exchange.
The stock was also the top loser on the Nifty IT index.Â
It may be noted that HCLTech has faced a 6.31% decline so far this year and over 10% in a month.Â
Today's downturn in the company's stock price comes after its Q4FY24 results.
While its net profit rose marginally in the March quarter, it was the company's lower-than-expected revenue projection that have made brokerages and investors nervous.Â
In its outlook for fiscal 2025, the Noida-based company projected revenue growth of 3-5%, a forecast that fell below market estimates. HCLTech CEO C Vijayakumar highlighted ongoing macroeconomic challenges likely to impact demand throughout the fiscal year.
Analysts viewed HCLTech's outlook as below market expectations, with Jefferies labeling it a "key negative surprise."
Meanwhile, Nirmal Bang noted that the projected growth rate for FY25, at its midpoint, indicated slower expansion compared to the 5% growth seen in FY24.
HCLTech's management attributed the lower guidance range to revenue pressure stemming from increased offshoring and the effects of its deal with financial services firm State Street.
Following the results, around 18 analysts lowered their target price for HCLTech, with the median target falling to Rs 1,532.50 from Rs 1,635.50 in March, according to LSEG data quoted in a Reuters report.Â
2024-04-29T07:18:45Z dg43tfdfdgfd