HCL Tech shares trim most of early gains; settle flat

Shares of IT services company HCL Technologies on Monday trimmed most of their early gains and ended flat amid profit-taking at the counter.

During the morning trade, the stock 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 during the day on the BSE. However, later it gave up most of the gains and edned at Rs 1,569.20, up 0.56 per cent.

On the NSE, shares of the firm ended at Rs 1,568, up 0.49 per cent after jumping 4.88 per cent to Rs 1,636.40 a piece in intra-day.

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.