Shares of HCL are slipping. Know why

Futures of HCL Technologies Ltd. were the top losers in the derivatives space after India's 4th largest software exporter reported earnings that fell below market's forecasts.

HCL Tech said its fourth quarter consolidated net profit rose 5 percent to 1,783 crore rupees compared with 1,683 crore rupees in the third quarter, sequentially. Sales during April-June gained 5.5 percent to 9,777 crore rupees from 9,267 crore rupees during January-March.

HCL Tech said its Infrastructural revenue exceed $2 billion in sales; Financial Services revenue topped $1.5 billion on an annual basis. It added 1 client in USD 100 million+ category, 5 Clients in $40 million+ space thanks to increased momentum in large deal signings in Engineering and R&D Services.

HCL Tech fell 4.2 percent, or 42 rupees, to 956 rupees on the National Stock Exchange, where 9.24 lakh shares were traded in the first hour of trade compared with the 5-day average of 15.7 lakhs.

HCL Tech's market capitalisation has risen 27 percent over the past one year to 1.40 lakh crore rupees as investors lapped up growing overseas demand for India's cutting edge software services.

Image credit: Indiatimes