HCL Tech slips down

HCL Tech is down in the red today morning. The stock, which had closed yesterday at Rs.1337.55, opening lower at Rs.1276 and going down further to an intraday low at Rs.1244. Its 52-week low is at Rs.1377.

The stock tanked despite a decent performance, which obviously means profit booking is at place. The company reported a net profit at Rs.3442 crore, up 5% on QoQ but down 14% on YoY.

The revenue for the quarter was up 8% sequentially and up 16% YoY.

Infact the company said that on a constant currency basis, its revenue was up 8% (QoQ), which is one of its best quarters in the last 12 years.

In terms of guidance, the management said that it is keeping intact its double digit revenue guidance for FY22 at 19-21%. The company though said that 65 bps margin impact for the quarter would not be recurring in nature but other factors may continue to impact for few quarters. And due to this, it expects EBIT margins to be at the lower end of the guided range.  

This guidance and the pressure on the EBIT margins is what led to traders scampering off the stock.