InvestorQ : Why did HCL Tech also report a weak quarter compared to other IT companies?
Katherine Gonsalves made post

Why did HCL Tech also report a weak quarter compared to other IT companies?

Answer
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Rutuja Nigam answered.
1 year ago


HCL Tech did have a weak quarter because its profits fell by 7.6% on a YOY basis and 13% fall on QOQ basis. Revenues for the quarter were up by 2.7% at Rs. 16,425 crore which was better than expected. The fall in profit was largely driven by higher operating costs that are a challenge for all IT companies due to letting more of the business to local employees in other countries. However, the stock looks interestingly priced at the current levels and considering the strong guidance given, the downside risk may not be too high. You can look to accumulate the stock.