HCL Tech dips 13%; mcap down by Rs 17,449 crore on revenue worries

Mumbai: Shares of IT services firm HCL Technologies on Thursday fell by nearly 13 percent, wiping out Rs 17,449 crore from its market valuation, after the company said it expects revenues for the September quarter to be "tepid".

Consequently, shares of the company tumbled 12.65 percent to settle at Rs 857.90 on BSE. During the day, it plunged 14.75 percent to Rs 837.20, its biggest fall in many years.

The stock had lost 15 percent on January 7, 2009.

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At NSE, shares of the company plummeted 12.73 percent to Rs 857.05.

The stock was the worst performer among the 50-Nifty components.

Led by the sharp sell-off in the stock, the company's market valuation also dipped by Rs 17,449.11 crore to Rs 1,20,638.89 crore.

In terms of volume, 12.35 lakh shares of the company changed hands at BSE and over one crore shares were traded at NSE during the day.

"The company expects tepid revenue growth in the first quarter. These factors will have a significant impact on the overall performance of the company in 1Q FY2016," said Sarabjit Kour Nangra VP Research - IT, Angel Broking.

HCL Technologies yesterday said it expects its revenues for the September quarter to be "tepid", impacted by adverse currency movement and issues with a client in the public services vertical.

The country's fourth-largest software services firm, which follows July-June fiscal, will announce its earnings for the July-September quarter in the fourth week of October.

"The revenue growth is likely to be tepid on account of adverse currency impact; a client specific issue and; skewness in revenue growth due to transition timelines for complex engagements particularly in Infrastructure Services," it had said in a BSE filing yesterday.

For the quarter ended June 2015, the company's revenues stood at Rs 4,465.50 crore, while for financial year 2014-15, it was Rs 17,153.44 crore.

The Noida-based firm said during the quarter, revenues to be reported in US dollar would have an adverse impact of 80 basis points on account of sharp depreciation of multiple currencies against the greenback.