HCL Technologies' Profit Plunge: The Restructuring Strategy
HCL Technologies' shares fell over 3% following a 9.7% drop in net profit for the June quarter, impacted by higher expenses and client bankruptcy. Despite this, the company raised its revenue growth outlook, driven by restructuring plans to optimize costs and facilities to improve margins.
- Country:
- India
Shares of HCL Technologies witnessed a decline of over 3% on Tuesday following the company's announcement of a 9.7% fall in consolidated net profit for the June quarter. This drop in profit was attributed to increased expenses and a one-time impact due to a client bankruptcy.
The stock price for the IT services firm closed at Rs 1,566.35 on the BSE, marking a 3.31% decline after hitting a low of Rs 1,550.50 during the day. Similarly, at the NSE, the shares settled 3.25% lower at Rs 1,567.
Despite the financial setback, HCL Technologies has adjusted its revenue growth outlook for the fiscal year, anticipating improvement from upcoming bookings. In a strategic move to enhance efficiency, CEO and MD C Vijayakumar announced a restructuring program aimed at increasing structural agility and addressing market demands in the AI era.
(With inputs from agencies.)
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