On Friday, HCL Technologies shares gained 3% in the early trade after the business reported better numbers in the quarter that ended March 2023.

On April 20, HCL Technologies reported a combined Q4 net profit of Rs 3,981 crore, up 10.61% over Rs 3,599 crore a year back. The company stated in an exchange filing that its income from operations for Q4 stood at Rs 26,606 crore, showing a growth of 17.74% from Rs 22,597 crore.

Constant currency revenue tumbled 1.2% QoQ and is up 10.5% YoY. US dollar revenue was at $3,235 million, up 8.1% YoY. The firm’s EBIT was Rs 4836 crore, 18% of revenue.

The brokerage firm Nomura has given the stock a ‘neutral’ rating, cutting its target price to Rs 1,100 per share. The Q4FY23 results were largely in line, while FY24 guidance imitates a challenging macro environment.

JPMorgan has retained an ‘underweight’ rating on the stock, lowering its target price from Rs 920 to Rs 880. The project ramp-downs, and delays, led to a miss on its FY23 CC guidance.

Morgan Stanley, a foreign research firm, has maintained an ‘Overweight’ rating with a target price of Rs 1,160. The FY24 revenue guidance also seems hostile, given the macro circumstances and weak FY23 ACV growth. The firm lowers its EPS estimates by 2% to 3%.

Jefferies has kept a ‘hold’ rating and set a target price of Rs 1,125. The Q4 results did not spring any major negative wonders, although the decline in ER&D revenue was unsatisfactory. However, growth in BFSI and North America resulted positively.

At 9:22 am, HCL Technologies was trading Rs 1,051.45, up Rs 13.90, or 1.34% on the BSE.