HCL Technologies has done better than expected in the first quarter. Its numbers came despite the fact that it had to provision for higher taxes after the government ended a sop to the industry. Net profit gained 9% compared to the previous quarter to Rs510 crore. And revenue climbed 3.9%% to Rs4,300 crore. The firm’s profits were fuelled by higher productivity and forex gains. It also managed to increase its Ebit margins from the last quarter’s 14.5% to 15.5%. But analysts warn that with a round of wage hikes slated for the next quarter, those are likely to dip again. A mixed response from investors sent shares of the company tumbling 2.32% on the BSE to 502.85.
Finance minister Pranab Mukherjee has made it clear he’s not happy with the current rise in food prices. On Wednesday he described 8% food inflation as unacceptable. The statement came a day after the Reserve Bank increased policy rates by 50 basis points in an effort to tame persistently high inflation.
Indian markets declined for a second straight session in response to the Reserve Bank’s rate hikes in Tuesday. The Sensex dropped 85.97 points to 18432.25. And the Nifty lost 28.05 to 5546.80