New Delhi: Shares of HCL Technology Ltd fell up to 2.5% on Wednesday, a day after the IT services company missed its first-quarter profit estimate, primarily due to higher employee-related expenses.
According to Refinitiv data, HCL posted a net profit of Rs 32.83 billion ($412.28 million) on Tuesday, lower than the average estimate of Rs 33.1 billion.
The company reiterated its outlook for revenue growth at 12% to 14% in constant currency for the year 2022-23 and said it expects earnings before interest and tax (EBIT) margin to be in the range of 18% to 20%.
Several analysts said the margin outlook was disappointing.
Analysts at Motilal Oswal said, “We expect HCL to continue to struggle (on the margin side) due to supply-side issues and a weak start to FY23, resulting in its EBIT margin falling below its guidance by 50 basis points.” Will lose the edge.” in a note.
According to Refinitiv data, HCL posted a net profit of Rs 32.83 billion ($412.28 million) on Tuesday, lower than the average estimate of Rs 33.1 billion.
The company reiterated its outlook for revenue growth at 12% to 14% in constant currency for the year 2022-23 and said it expects earnings before interest and tax (EBIT) margin to be in the range of 18% to 20%.
Several analysts said the margin outlook was disappointing.
Analysts at Motilal Oswal said, “We expect HCL to continue to struggle (on the margin side) due to supply-side issues and a weak start to FY23, resulting in its EBIT margin falling below its guidance by 50 basis points.” Will lose the edge.” in a note.