HCL Tech's Stock Takes a Dive: Insights on March Quarter Earnings

HCL Technologies witnessed a significant downturn in its stock value, plummeting over 6% following the release of its March quarter earnings report. The stock stumbled to Rs 1,382.45 on the BSE and Rs 1,382.10 on the NSE, marking it as the top underperformer among both the BSE Sensex and NSE Nifty companies.

HCL Tech shares tumble after Q4 earnings

The company reported a stagnant year-on-year growth in net profit for the March quarter, amounting to Rs 3,986 crore. This figure represents an 8.4% decline from the previous quarter, attributed to escalating employee costs and a tightening of IT expenditures worldwide.

Despite these challenges, HCL Technologies deemed its performance as “decent” considering the prevailing global macroeconomic conditions. The company’s consolidated net profit for the fourth quarter of FY24 stood at Rs 3,986 crore, compared to Rs 3,983 crore in the corresponding period of the previous year.

Additionally, the company provided guidance for the fiscal year 2025, forecasting a 3–5% growth in revenue in constant currency terms and an EBIT margin ranging from 18% to 19%.

As HCL Tech navigates through these economic fluctuations, investors await further insights into the company’s strategies for maintaining growth and profitability amidst a dynamic market landscape.