HCL Tech shares drop 9% due to mixed earnings, revenue guidance concerns, and valuation issues. Learn more about the market impact.

In a knee-jerk reaction to its quarter earnings for the December 2024 quarter, Shares of HCL Technologies Ltd cracked more than 9 per cent during the trading session on Tuesday.

HCL Technologies shares slipped 6.5% on Tuesday, January 14, to their intraday low of Rs 1,856 after the IT services company reported a 6% growth in its consolidated net profit to Rs 4,591 crore for the quarter ended December 2024.

Market experts noted that despite delivering a solid financial performance driven by a sharp uptick in deal wins, TCS and HCL Tech faced pressure due to higher expectations on the Street

Shares of IT giant HCL Tech tumbled by nearly 9% following disappointing Q3 earnings that failed to meet investor expectations. Despite a rise in revenue and profit, the stock became the biggest laggard among BSE Sensex and NSE Nifty.

The company’s current constant currency revenue growth guidance stands at 3.75%-4.5%. Analysts suggest it could be revised upwards to a range of 4%-5% or 4.5%-5%. Margin guidance is expected to remain unchanged at 20-22%.

HCL Technologies Q3 results are estimated to be strong with a revenue growth expected to be 4.5% on a sequential basis driven by seasonal tailwinds from renewals in its products business.