May 10, 2019 / 5:42 AM / 7 months ago

BUZZ-HCL Tech: weak margins sour strong revenue story

** IT services co shares fall 5.2% to 1,077.25 rupees - top percentage loser on Nifty

** Biggest intraday loss in nearly 5 months

** Reports here negative y-o-y revenue growth in financial services segment, its biggest revenue generator

** Sees FY EBIT operating margins between 18.5% to 19.5%

** ICICI Securities cuts rating to “add” from “buy” on results, says “weak margins sour the strong revenue story”

** Margins likely to be pressured further by tight labour markets in offshore markets - ICICI Securities

** Key geographies like U.S., key verticals BFSI/Manufacturing tepid - Ambit Capital

** Co’s consol quarterly profit beats estimates, sees FY revenue growth between 14 and 16 pct in constant currency

** 1.5x 30-day avg volumes traded

** Shares up 17.9 pct this year as of last close

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