HCL Tech share price jumped back in the green on Friday as the company posted its Q4 earnings.
What Happened: The IT services company reported its financial result for the March quarter in the after-market hours on Thursday. Revenue from operations grew 17.7% year-over-year to ₹26,606 crore beating market estimates. The company’s EBIT for the quarter ended March stood at ₹4,836 crore up 18.8% YoY slightly below estimates.
Net profits for the quarter jumped 10.8% YoY to ₹3,983 crore beating consensus estimates. The company’s hopeful results come amid a slowdown in the IT sector. IT stocks have been having a hard time at the bourses after sector giants TCS and Infosys‘ underwhelming results. However, HCL and Mastek’s results seem to have helped lift sentiments for the sector. The Nifty IT Index was back in the green on Friday up around 0.20% on Friday morning.
Brokerages however were not very impressed by the company’s numbers. Morgan Stanley maintained its ‘underweight’ rating for the stock slashing the target price to ₹880 from ₹920. Domestic brokerage firm ICICI Securities also maintained its ‘hold’ rating for the stock cutting the price target to ₹1,065 from ₹1,122. However, analysts at Macquaries remained bullish on the stock as they maintained their ‘outperform’ rating for the stock with a price target of ₹1,580- an over 50% upside from the stock’s last closing price of ₹1,037.50.
The company also declared an interim dividend of ₹18/share. The company has paid dividends for 81 consecutive quarters now.
Price Action: HCL Tech share price was up 1.52% to trade at ₹1,053.25 shortly after markets opened on Friday.
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