HCL Tech slumps on guidance

HCL Tech is the top loser on the BSE currently and the stock touched an intraday low of Rs 1,074.45, going down over 5%. The stock price has been losing for the last 2 days and has fallen 4.46% in the period.

More than the earnings, the market is disappointed with the management’s guidance for FY20.

The company announced a 100 bps cut in estimated operating margins for FY20 at 18.50% to 19.50% in constant currency (CC) terms. The EBIT margin for FY19 was at 19.5%. And in terms of revenue growth, it has guided a 14 to 16% growth in CC.

The company ended Q4FY19 with a 2% (QoQ) growth in revenue at Rs.15,990 crore and net profit came in at Rs.2568 crore, down 1.7%. EBIT was down 1.5% at Rs.3039 crore.