HCL Tech's Shares Plummet Amid Underwhelming Earnings

HCL Tech's shares fell nearly 10% after its December quarter earnings disappointed investors. The company's market valuation decreased by Rs 46,987.11 crore, despite reporting a profit increase to Rs 4,591 crore and raising its revenue growth guidance. Other IT stocks also saw declines.

On Tuesday, shares of IT company HCL Tech tumbled almost 10%, following unremarkable December quarter earnings that failed to meet investor expectations.

The stock saw a significant drop of 9.41% on the BSE and 9.63% on the NSE, becoming the biggest laggard on the BSE Sensex and NSE Nifty indices. The company's market valuation reduced by Rs 46,987.11 crore, standing at Rs 4,91,743.25 crore during the morning session.

Despite HCL Tech reporting a 5.54% rise in consolidated net profit to Rs 4,591 crore for the quarter and an improved revenue growth guidance, financial analysts from Motilal Oswal and Mirae Asset Sharekhan expressed that the earnings and guidance fell short of projections, influencing trading sentiments negatively. Other prominent IT stocks, including Tech Mahindra, Infosys, and Tata Consultancy Services, traded lower in light of the circumstances.

(With inputs from agencies.)