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  5. IT stocks trade mixed after HCLTech, TCS Q1 earnings; Coforge slips the most

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IT stocks trade mixed after HCLTech, TCS Q1 earnings; Coforge slips the most

Upstox
By Upstox News Desk

3 min read | Updated on July 15, 2024, 14:34 IST

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SUMMARY

The NIFTY IT index traded 0.07% lower at 38,994.35 levels. Of the ten constituents, seven stocks traded in the red and the rest three in the green.

Stock list

HCLTECH
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MPHASIS
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TCS
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COFORGE
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Trading-2-shutterstock.jpg

In 2024 so far, NIFTY IT has risen by around 9.7%

IT stocks were trading mixed in the afternoon deals on Monday, July 15, amid a positive trend in benchmark indices. Last week, two leading IT services firms, TCS and HCLTech, reported their June quarter (Q1FY25) results, which boosted investor sentiment with their encouraging numbers, order book and revenue guidance for FY25 (for HCLTech).

The NIFTY IT index traded 0.07% lower at 38,994.35 levels. Of the ten constituents, seven stocks traded in the red and the rest three in the green. Midcap IT company Mphasis was the top gainer on the index (up 1.46 per cent), followed by HCLTech (up 0.93%) and Infosys (0.25%).

Meanwhile, the benchmark NIFTY50 index was trading 0.45% higher at 24,613.55 levels.

On the flip side, Coforge was the biggest loser. The stock traded 1.55% lower at ₹5,884.85. Other losers were LTIM, LTTS, and Tech Mahindra.
TCS last week reported an 8.7% growth in the June quarter net profit at ₹12,040 crore, but sounded unsure about sustaining growth momentum in the remainder of the fiscal. The Tata Group company, however, reiterated that it feels FY25 will be better than the previous fiscal year for the business.
TCS posted revenue growth of 5.4% to ₹62,613 crore for the quarter, and chief executive and managing director K Krithivasan said that the company was happy with the all-round growth.

The company reported new deal wins of $8.3 billion for the June quarter, of which $4.6 billion were from North America and USD 2.7 billion came from the BFSI vertical, Krithivasan said. The new wins or total contract value was much lower when compared to both the quarter-ago period and the year-ago period, but the CEO said the company was comfortable till the quarterly figure is between $7-9 billion.

HCLTech reported a 20.4% rise in consolidated net profit to ₹4,257 crore and gave a revenue growth guidance of 3-5% for FY25 on GenAI diversification and strong operational execution. The revenue came in at ₹28,057 crore, up 6.6% on a year-on-year (YoY) basis. On a sequential basis, it was 1.6% lower than the March quarter.

Commenting on the first quarter numbers, HCLTech CEO and MD C Vijayakumar said the Q1 revenue and EBIT (earnings before interest and taxes) performance was "slightly better than our expectations". The MD added that the Q1 has been a seasonally soft quarter for HCLTech, but affirmed that the Noida-headquartered tech major will achieve its annual growth guidance.

NIFTY IT composition

There are ten constituents of the Nifty IT index. Infosys has the highest weightage with 27.68%. TCS comes second on the list with a weightage of 24.22%.

In 2024 so far, NIFTY IT has given returns of around 9.7%, whereas the benchmark NIFTY50 has risen by about 13% year-to-date.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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