HCLT stock surges 7%; m-cap swells by Rs 2,251 cr
Mumbai: Shares of HCL Technologies surged as much as 7 percent Wednesday, adding Rs 2,251 crore to its market capitalisation, after the company reported over 67 percent jump in net profit for the fourth quarter.
The HCLT scrip jumped more than 7.66 percent on the BSE and touched intra-day high of Rs 518.50. It closed at Rs 513.75, up 6.68 percent from Tuesday's close. On May 2, it was at 52-week high of Rs 523.50.
The company's market capitalisation swelled by Rs 2,251 crore to Rs 35,621 crore, from Rs 33,370 crore on Tuesday.
The company this morning posted 67.3 percent jump in net profit to Rs 854.1 crore for the April-June quarter of 2011-12 fiscal. The IT services major had a net profit of Rs 510.5 crore in the same quarter last year.
"HCLT results were above estimates and operating margins were much above expectations," Kotak Securities Head of PCG (Private Client Group) Research Dipen Shah said
During the quarter, HCLT signed eight multi-year, multi- million transformational deals, while for the entire 2011-12 it won 52 transformational deals.
"The volume growth was much better than several large peers. HCLT's focus on the churn market has yielded record wins in the past few quarters and execution on the same will likely lead to sustained growth rates in the foreseeable future," Shah said.
HCLT's total income rose to Rs 5,919.1 crore during the reporting quarter, from Rs 4,299.5 crore in Q4 quarter last fiscal, up 37.7 percent.