InvestorQ : Why did HCL Tech rally so sharply on Monday?
Angel dcosta made post

Why did HCL Tech rally so sharply on Monday?

Juvina Maggie answered.
7 months ago

One of the top performers on 14 September was HCL Technologies which rallied over 7% to scale the Rs.770 mark. This was after the company guided for improved revenue and operating margin for the July-September quarter in the current fiscal.

In fact, HCL Tech guided that the revenue growth for the Sep-20 quarter was likely to exceed 3.5% constant currency terms. This is likely to be driven by a strong momentum across different and diverse service lines, verticals and geographies.

HCL Tech also upgraded its EBIT margins for the Sep20 quarter at around 21%, putting it at par with Infosys in terms of operational margins. HCL Tech also reported a smart growth led by verticals like life sciences, healthcare, telecom, media and BFSI.

For the full fiscal year 2020-21, HCL Tech looks to defend its margins. HCL Tech has guided for a revenue fall of 2.5% in FY21 in dollar terms which is commendable in a year when most businesses are struggling to come out of the COVID conundrum.