HCLTech Shares Plunge After Missing Q3 Revenue Estimates

India's third-largest software company reported a 5.1% rise in revenue but fell short of market expectations, prompting a sharp sell-off and multiple brokerage downgrades.

• HCLTech's Q3 FY25 consolidated revenue rose 5.1% to ₹298.9 billion but missed the analyst consensus estimate of ₹300.68 billion.
• The company's net profit for the quarter increased by 5.54% year-over-year to ₹4,591 crore, up from ₹4,350 crore in Q3 FY24.
• Shares of HCLTech plummeted over 9% in early trading on January 14, falling below the ₹2,000 mark for the first time in recent months.
• At least 11 brokerages downgraded the stock following the earnings report, with four also reducing their price targets.
• The revenue miss is attributed to weaker discretionary tech spending by clients due to global macroeconomic uncertainties and the seasonal slowdown in the December quarter.

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