HCL Tech is down in the red, following its earnings report for Q1FY22. From its close of yesterday at Rs.1000.20, the stock opened lower at Rs.991 and went down to hit an intraday low at Rs.969.50. It is currently trading in the red at Rs.975 levels.

The numbers came in much below analyst’s expectations. It reported a 8.5% (QoQ) rise in consolidated net profit at Rs.3214 crore on a 2.2% increase in revenue at Rs.20,068 crore.

In constant currency (CC) terms, the company’s revenues grew a meager 0.7%. Operating profit slumped over 5% due to increases given in wages while margins shrunk 160 bps to 24.5%. Though this was much better than its full year guidance of 19-21%, it did not quite meet analyst expectations.

For the current fiscal, the management expects revenues to grow in double digits in CC terms and expects operating margin for FY22 to be at 19-21% range.