Shares of HCL Technologies on Monday tumbled 7 percent after the company reported a 13.6 percent fall in net profit for the December 2021 quarter. The stock tanked 6.99 percent to Rs 1,244 on the BSE. At the NSE, it declined 7 percent to Rs 1,243.40.
IT firm HCL Technologies on Friday reported a 13.6 percent fall in net profit to Rs 3,442 crore for the December 2021 quarter and said it expects to see a strong deal pipeline on the back of a robust demand environment. The company had logged a net profit of Rs 3,982 crore in the October-December 2020 quarter (as per US GAAP). Its revenue grew 15.7 percent to Rs 22,331 crore in December 2021 quarter from Rs 19,302 crore in the same period last year.
The company explained that the profit after tax (PAT) in the third quarter of FY21 was higher by USD 59.4 million (Rs 438 crore) due to the reversal of the prior year's tax provision due to a change in the method of calculating a tax deduction, basis evaluation of judicial rulings. HCL Technologies Chief Financial Officer Prateek Aggarwal said that excluding this, PAT was lower by 2.9 percent in December 2021 quarter year-on-year in rupee terms.
"It's basically three things - one is the seasonality, the leaves taken by people during this quarter because of the festive season. Second is the increments we gave out this quarter... (the) third is the cost of attrition and backfilling people at a higher cost, targeted retention costs, higher recruitment costs, and others," he told reporters.
With inputs PTI