HCL Tech Shares Tank 6 Per Cent; Mcap Declines By Rs 21,369 Crore

The IT services firm on Friday posted a 13.6 per cent fall in net profit to Rs 3,442 crore for the December quarter

In volume terms, 5.67 lakh shares were traded on the BSE and over 1.19 crore on the NSE. Image: Getty

New Delhi: Shares of HCL Technologies on Monday tumbled nearly 6 per cent after the company reported a 13.6 per cent fall in net profit for the December 2021 quarter (Q3).

The stock plunged 6.99 per cent to Rs 1,244 during the day on the BSE. It settled at Rs 1,258.80, a decline of 5.89 per cent.

On the NSE, it tumbled 5.73 per cent to close at Rs 1,260.55.

The company’s market valuation diminished by Rs 21,369.84 crore to Rs 3,41,596.16 crore on the BSE.

In volume terms, 5.67 lakh shares were traded on the BSE and over 1.19 crore on the NSE.

The IT services firm on Friday reported a 13.6 per cent fall in net profit to Rs 3,442 crore for the December 2021 quarter and said it expects to see a strong deal pipeline on the back of a robust demand environment.

The company had logged a net profit of Rs 3,982 crore in the October-December 2020 quarter (as per US GAAP).

Its revenue grew 15.7 per cent to Rs 22,331 crore in December 2021 quarter from Rs 19,302 crore in the year-ago period.

The company explained that the profit after tax (PAT) in the third quarter of FY21 was higher by $59.4 million (Rs 438 crore) due to the reversal of a prior year's tax provision due to a change in the method of calculating a tax deduction, basis evaluation of judicial rulings.

HCL Technologies Chief Financial Officer Prateek Aggarwal said that excluding this, PAT was lower by 2.9 per cent in December 2021 quarter year-on-year in rupee terms.