HCL Tech hits new high

HCL Tech hit a new 52-week high today at Rs.926 and continues to remain firmly in the green.

This exuberance on the counter is thanks to its performance for Q1FY18 – it was down sequentially but YoY the growth has been good. More than the numbers, the market is happy that the company has maintained its revenue guidance for the full year. It has stated that for the financial year 2017-18, revenue will grow at 10.5% to 12.5% in constant currency terms, which is 11.3% to 13.3% in dollar terms. It expects operating margin to be in the range of 19.5% to 20.5%.

On the performance front, it reported a 11% (QoQ) drop in net profit at Rs.2210 crore and revenue rose 0.8% at Rs.12,149 crore, up 7% on YoY.

In dollar terms revenue was up 4% at $1,884 million while net profit was down $% at $337 million (QoQ). In costs currency, revenue rose 3% on QoQ and 12% on YoY.

EBITDA was up 1% at Rs.2444 crore and margin was flat but good at 20.1%. The company signed 13 deals during the quarter, mainly from the U.S. and Europe and during the quarter, it added 11 new clients.

The company has completed its buyback and it bought back 3.5 crore equity shares at price of Rs 1,000 per share.