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HCL Technologies commentary calms nerves, but some worries remain

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HCL Technologies Ltd’s end-March communication with investors on the impact of covid-19 has helped contain the fall in its share price to some extent.

The stock lost one-third of its value from the highs in February by 30 March, more than the 26% drop in the Nifty IT index. After the recovery in the past few trading sessions, its performance is on par with the index.

The company said that work-from-home arrangements have not disrupted its operations. Besides, a large part of project bookings happened in January, before the lockdown came into effect. “While the impact on this quarter’s (Q4 FY20) numbers is yet to be quantified, we don’t expect it to be significant," said HCL Tech in a statement.

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