HCL Tech ends 2% up; net profit drops 2.7% to Rs 1,823 crore

Shares of country's fourth-largest software services provider HCL Technologies pared losses and surged over 2 per cent in trade on Monday after the company reported 2.7 per cent drop in consolidated net profit at Rs 1,823 crore for the first quarter ended September 30, 2015.

The company had posted a net profit of Rs 1,873 crore in the year-ago period, it said in a BSE filing.

The stock had hit an intraday low of Rs 818.40, down 2.72 per cent, on Bombay Stock Exchange, but it ended 1.88 per cent up at Rs 857.15.

HCL had already warned of a "tepid" September quarter on account of adverse currency impact and a client-specific issue.

"The stock has witnessed a huge correction post warning for a few soft quarters; however we believe that the stock has corrected significantly and hence we recommend a BUY rating with a price target of Rs 1,132," said Sarabjit Kour Nangra, VP Research - IT, Angel Broking.

Without the adjustment, the reported quarter's revenues stood at Rs 1,726 crore.

Consolidated revenues grew 15.6 per cent to Rs 10,097 crore (ex-adjustment) in July-September of this fiscal as against Rs 8,735 crore in the same quarter of the previous fiscal.
The firm follows July-June as the fiscal year.