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    HCL Tech hits 52-week high, up 12% on strong September quarter update; Nifty IT jumps 4%

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    HCL Tech hits 52-week high, up 12% on strong September quarter update; Nifty IT jumps 4%

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    Shares of HCL Tech jumped 12 percent on Monday to hit a fresh 52-week high after a strong September quarter update by the company.

    Shares of HCL Tech jumped 12 percent on Monday to hit a fresh 52-week high after a strong September quarter update by the company. The IT firm said that it sees Q2 constant currency revenue up over 3.5 percent on a QoQ basis and margin in the range of 20.5-21 percent. It is enabled by broad-based momentum across all service lines, verticals and geographies, the firm added.
    The stock rose as much as 12 percent to its 52-week high of Rs 807.80 per share on BSE. Other IT stocks also followed the trend. All constituents of the Nifty IT index were in the green. The index was also over 4 percent. Mindtree, Tech Mahindra, TCS, Infosys, and Wipro were up 3-4.5 percent.
    In the June quarter, the company said that it expects topline to increase by an average of 1.5-2.5 percent QoQ in constant currency for the next three quarters while operating margin is likely to grow between 19.5-20.5 percent for FY21.
    "We are providing this mid-quarter update as we expect the Revenue and the Operating Margin for the current quarter (September'20) to be meaningfully better than the top end of the guidance we had provided in July 2020. We have seen strong execution during the quarter to date, and continue to execute to the plan this month," the company said in a BSE filing.
    Good Booking momentum continues this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals, it added.
    The company further stated that the pipeline continues to look healthy across service lines, verticals and geographies.
    For the June quarter, the company reported better than expected net profit. It posted a 31.7 percent rise in consolidated net profit in June 2020 quarter at Rs 2,925 crore and said it expects to see a positive growth trajectory in the coming quarters on the back of a strong deal pipeline.
    The consolidated revenue of the company increased by 8.60 percent YoY to Rs 17,841 crore in Q1FY21.
    EBITDA jumped 34.30 percent YoY to Rs 4,566 crore during the April-June period against Rs 3,401 crore in the same period last year.
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