Shares of IT services firm HCL Technologies closed over 3 per cent lower on Tuesday after the company reported a 9.7 per cent drop in consolidated net profit for the June quarter.
The stock fell by 3.31 per cent to settle at Rs 1,566.35 on the BSE. During the day, it declined 4.28 per cent to Rs 1,550.50.
At the NSE, it settled lower by 3.25 per cent to Rs 1,567 after dropping 4.30 per cent to Rs 1,550 in intra-day trade.
The stock emerged as the biggest laggard among the Sensex and Nifty firms.
The company's market valuation eroded by Rs 14,545.24 crore to Rs 4,25,054.93 crore.
HCL Technologies on Monday posted a 9.7 per cent drop in consolidated net profit for the June quarter, hurt by higher expenses and one-time impact of a client bankruptcy, but raised the lower end of revenue growth outlook for the full fiscal year on booking expectations in coming quarters.
Consolidated net profit for the April-June quarter of this fiscal year was at Rs 3,843 crore against Rs 4,257 crore in the year-ago period, according to a regulatory filing.
The financial results were announced after the closing of market hours on Monday.
HCL Tech CEO and MD C Vijayakumar also announced plans to execute a restructuring programme on both the people and non-people side, aimed at achieving structural agility to address market demand in the AI era.
The restructuring, he said, will involve optimising unutilised facilities, mostly in locations outside India, and talent ramp down in geographies outside India.
The impact of this restructuring plan, which is expected to begin in the current quarter, is factored into the growth guidance, he said.
"On the restructuring program, our objective is to get back to our 18 per cent to 19% margins. There will be incremental costs involved in achieving this. That is also the reason we have taken our guidance to be a little lower this year," he said during the company's earnings call.
Revenue from operations for the quarter under review was 8.1% higher at Rs 30,349 crore against Rs 28,057 crore in Q1 FY25.
The Noida-headquartered company saw a 9.2% increase in overall expenses during the first quarter of FY26, which included employee benefit expenditure, as well as outsourcing and finance costs, which impacted the profit.
Vijayakumar said the first quarter was historically the weakest quarter for the company, although the environment, with some variations, mainly remained stable and did not deteriorate as feared at the start of the quarter.
