HCL Technologies share price falls 2% after weak Q1 results; Should you buy, sell or hold the stock?

livemint.com:

₹3,534 crore. Sequentially, the net profit declined by 11.27% as compared to ₹3,983 crore in the March quarter. HCL Technologies’ consolidated revenue grew 12.06% to ₹26,296 crore during the quarter under review from ₹23,464 crore in Q1 of FY23.

The topline registered a fall of 1.2% QoQ. The dollar revenue for the company was at $3,200 million as against $3,235 million quarter-on-quarter. HCL Tech's EBIT, or earnings before interest and tax, came in at ₹4,438 crore as against ₹4,836 crore in the previous quarter.

The company retained its constant currency revenue growth guidance of 6-8% for FY24 and operating margin guidance at 18-19%. Read here: HCL Tech Q1 Results: 5 key highlights from the IT major's June quarter scorecard Here’s what brokerages said about HCL Technologies Q1 results: JPMorgan said HCL Technologies’ Q1 earnings missed estimates on all fronts and the company negatively surprised by discretionary tech spends cuts driving project ramp downs. The brokerage maintained ‘Underweight’ rating on the stock with a target price of ₹900 per share.

Also Read: TCS or HCL Tech for short-term after Q1FY24 results? Here is analysts' verdict Jefferies said that the company’s Q1 results missed estimates due to unexpected revenue decline in both services and software segments. The deal wins were soft though management expects stronger deal wins in Q2, while the company maintains guidance on CC growth and margin despite the miss, Jefferies noted. The global brokerage maintained ‘Hold’ rating on the stock with a target price of ₹1,205 per share.