HCL Tech's mid-quarter guidance optimism sparks rally in TCS, Infosys, Wipro, and Tech Mahindra too

HCL Technologies' share price jumps by more 10% in afternoon trade after company announces its mid-quarter guidanceHCL Tech
  • HCL Technologies’ stock was trading over 10% in afternoon trade today after the IT services giant announced its mid-quarter review.
  • It issued a revenue growth guidance of 3.5% and EBIT of between 20.5% to 21% this quarter.
  • The rally led to the share price of other bigwig IT stocks — Tata Consultancy Services (TCS), Infosys, Wipro and Tech Mahindra — to also shoot up by at least 3%.
Indian IT services giant HCL Technologies’ mid-quarter review and guidance haveIT stocks rallying to new highs even as the COVID-19 uncertainty continues to loom. The company expects its revenue growth to be around 3.5% for this quarter, after reporting a dip of 7.2% at the end of June.

HCL Tech’s own share price shows the biggest jump, rallying by over 10% in afternoon trade on the Bombay Stock Exchange.

HCL Tech's share price over the last three monthsBSE/BI India

In the rally led by HCL Tech, the other top 5 Indian IT stocks — Tata Consultancy Services (TCS), Infosys, HCL Tech, Wipro, Tech Mahindra, and L&T Infotech — followed suit, shooting up by at least 3%.
Advertisement


The boon for the even greater for TCS as the sudden rise took it to become the second Indian company to cross the ₹9 lakh crore mark after Mukesh Ambani's Reliance Industries crossed the same threshold in October last year.

Company% change (trade today)
Tata Consultancy Services (TCS)3.26%
Infosys4.13%
HCL Tech10.67%
Wipro3.26%
Tech Mahindra3.57%
L&T Infotech4.06%
Source: BSE as of 1:30 pm on September 14

HCL Tech’s mid-quarter review
In the first three months of the current financial year, April to June, HCL Tech signed 11 new deals even though the number of large clients it has on its payroll did not increase.

Advertisement

HCL's 7.2% fall in revenue is also greater, compared to its peers, who were also in the red but by a lesser margin.

HCL Tech's revenue dipped by 7.2% in the first quarter of the current financial yearCompany filings/BI India

“Good booking momentum continues this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals,” HCL Tech said in its filing with the BSE, adding that the pipeline continues to look healthy.

SEE ALSO:
It's not just India — Chinese intelligence has its eye on more than 2.4 million individuals across the US, Japan, Canada, Australia, and the UK

India-China border tension will be in focus as the Parliament's Monsoon session begins today

All eyes on Parliament's Monsoon session — the Banking Regulation (Amendment) Bill 2020 may not be on the docket for long

{{}}