HCL Tech top gainer in Nifty IT pack, gains 2% ahead of Q2 results

HCL Technologies shares traded in green on Wednesday ahead of the announcement of the second quarter results for the current fiscal. The counter gained more than 2 per cent to emerge as top Nifty50 gainer and also in the Nifty IT pack in early trade.

HCL Tech stock made an intraday high of Rs 943.30 as it advanced more than 2 per cent. Profit booking in the scrip, however, dragged the stock to trade at Rs 950 apiece at 2 PM on the NSE.

The country's third largest IT company is set to announce its Q2 results post-market. Several brokerage firms and analysts have expressed confidence that the company may report good performance.

HCL Tech stock is available at a discount of around 30 per cent from its 52-week high. The stock's 52-week range is Rs 1,359.40 - Rs 877.35. Over the time period of one year, the scrip has yielded a negative return of over 24 per cent.

According to Zee Business senior research analyst Varun Dubey, HCL Tech’s revenue in rupee terms is expected to grow by 4.6 per cent quarter-on-quarter (Q-o-Q) to Rs 24,550 crore (estimate) against Rs 23,463 crore in Q1FY23. 

Earlier, HCL Technologies had said that it plans to hire 1,300 people in Mexico over the next two years. The move is expected to strengthen its current employee base of 2,400 people over there.

HCL Tech outlined its expansion plans in Mexico at its 14-year anniversary celebration at Guadalajara, in Mexico and said "the company expects to hire 1,300 people in the next two years".

The IT firm will also be opening its sixth technology center in Guadalajara.

The new center will significantly expand its presence to serve its growing local and international client base across industries and will focus on creating next-generation digital solutions.

"In line with the company's hybrid operating model, the center will embrace an agile workplace," the statement said.

The company recently announced a digital transformation partnership with Cemex, a global construction materials company and an integrated IT Services partnership with Neoris, a leading global digital accelerator.

Brokerage reports and analysts' notes on Q2 earnings preview anticipate a reasonably strong growth quarter for Indian IT firms despite challenging macroeconomic scenario in the US and Europe, but there are a fair bit of warnings around "incremental pockets of weakness" or "slowdown in coming quarters".

The sunny, all-bullish demand narrative just a few quarters back has made way for more cautious and tempered expectations as storm clouds over the global economy prompt economic commentators to flash warnings about recession risks and international market shocks.