Following the release of earnings, HCL Tech shares increase by more than 1%

On Thursday morning, HCL Technologies’ stock increased more than 1% after the firm revealed a 7.6% year-over-year increase in its June quarter net profit thanks to new order wins.

The German automotive engineering services company ASAP Group, which is owned by the IT giant, is offered for sale for 251.1 million euros, or around Rs 2,300 crore.

According to a BSE document made public on Wednesday, the purchase would probably be completed by September 2023 via an all-cash transaction through its UK company, subject to regulatory clearances.

 

The stock climbed 1.31 percent to Rs 1,124.70 on the BSE after regaining all of its earlier lost territory.

 

Following a decline in the opening session, it increased 1.24 percent to Rs 1,124.40 on the NSE.

 

According to a stock market statement on Wednesday, the company’s consolidated net profit for the months of April through June increased from Rs 3,283 crore during the same period last year to Rs 3,534 crore.

 

Comparing its net profit on a quarterly basis to the Rs 3,983 crore profits from January to March, there was an 11% decrease.

 

At Rs 26,296 crore, the company’s sales was down 1.2% from the previous quarter but up 12.1% from the previous year.

 

Revenue was down 1.3% quarter over quarter but up 6.3% year over year when measured in terms of constant currency.

 

Seven of the significant contracts were for services, while 11 were for software, according to HCL.

 

The company forecasted a constant currency sales increase of 6–8% and an EBIT (Earnings Before Interest and Taxes) margin of 18–19%.