HCLTech Share Price Trades Lower Ahead Of Q3 Result

HCLTech Ltd. share price traded lower in early trade on Monday, ahead of the release of its third quarter financial results.

The company is likely to clock a net profit of Rs 4,614 crore and a revenue of Rs 4,614 crore for the quarter ended December, as per the consensus estimates of analysts tracked by Bloomberg.

On the operating side, the estimate for earnings before income and tax or Ebit is Rs 5,864 crore. The margin is projected at 19.52%.

This comes after the Shiv Nadar-founded company reported a sequential revenue increase of 2.9% for the quarter ended September 2024. The company’s revenue totalled Rs 28,862 crore, aligning with analysts' estimates of Rs 28,637.2 crore.

The management will also provide guidance for the coming period that will be closely tracked. The press conference will be held in the evening, after the release of the financial statement on the stock exchanges.

Since industry leader Tata Consultancy Services Ltd. announced its result on Thursday, information technology stocks have fared better than other sectors. HCLTech has gained 3% since Jan. 9.

HCLTech share price fell as much as 0.76% at Rs 1,980 per share. The stock was trading 0.1% lower at Rs 1,993 apiece as of 9:42 a.m., compared to a 0.8% decline in the NSE Nifty 50.

The stock has risen 47.57% in 12 months, and 28.2% year-to-date. Total traded volume so far in the day stood at 2.6 times its 30-day average. The relative strength index was at 62.

Out of 43 analysts tracking the company, 21 maintain a 'buy' rating, 15 recommend a 'hold' and eight suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target of Rs 1,941 implies a downside of 2.8%.

On the other hand, most IT stocks were down, led by 4% decline in midcap player Coforge Ltd. Only TCS, Infosys Ltd. and L&T Technology Services Ltd. were trading in green.