HCL Tech Profit Jumps to Rs 1,915 Crore; Bonus Share Announced

HCL Tech shares jumped as much as 11.5 per cent on Friday after India's fourth largest outsourcer beat earnings estimates and also announced a 1:1 bonus issue.

In October last year, Infosys also had announced a bonus issue of one equity share for every equity share held by investors.

HCL Tech reported a net profit of Rs 1,915 crore on sales of Rs 9,283 crore in the December quarter. Analysts polled by NDTV expected HCL Tech to report a profit of Rs 1,774 crore on sales of Rs 8,968 crore. HCL Tech's operation (EBIT) margin was also ahead of estimates at 23.6 per cent.

HCL Tech's revenues in US dollars jumped 4 per cent sequentially to $1,491 million ahead of estimates of $1,449 million. In constant currency terms, HCL Tech's dollar revenues grew 6 per cent sequentially. To put things into perspective, TCS - India's biggest outsourcer - delivered just 2.5 per cent sequential growth in dollar terms in the December quarter. HCL Tech's other rivals - Infosys and Wipro - reported 2.6 per cent and 3.7 per cent rise in dollar sales during the quarter.

HCL Tech also announced one bonus share for every share held and a dividend of Rs 8 per share.

As of 2.04 p.m., HCL Tech shares traded 9 per cent higher at Rs 1,794.40 on the BSE. The stock hit a 52-week high of 1,834 in morning trade. It outperformed the broader markets, which were down over 1 per cent after a strong start.