India’s HCL falls on first-quarter profit miss, disappointing margin outlookShares of HCL Technologies Ltd dropped as much as 2.5 per cent on Wednesday, a day after the Indian IT services company missed first-quarter profit estimates, mainly due to higher employee-related expenses.HCL posted a net profit of 32.83 billion rupees ($412.28 million) on Tuesday, falling short of the average estimates of 33.1 billion rupees, according to Refinitiv data.The company reiterated revenue growth outlook for the year 2022-23 at 12 to 14 per cent in constant currency and said it expected earnings before interest and tax (EBIT) margin to be between 18 per cent and 20 per cent.Multiple analysts said the margin outlook was disappointing.”We expect HCL to continue to struggle (on margin side) due to elevated supply-side issues and weak start to FY23, which will result in its EBIT margin missing the lower end of its guidance by 50 basis points,” Motilal Oswal analysts said in a note.
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