The Mint Report for 18 October 2011

The Mint Report for 18 October 2011

HCL Technologies posted first quarter earnings that left investors disappointed on Tuesday. Profits fell to 497 crore, a fall of 6.4% from the previous quarter. And revenue climbed just 4.1% to 4,651 crore. Operating margin meanwhile declined to 17.1% from 18.5% in the June quarter. HCL’s results were hit by wage hikes and new hiring. The company also suffered a forex loss of $3.8 million compared to $1.9 million in the June quarter. Shares of the firm took a battering on Tuesday, losing 8.58% on the BSE to 401.15 on a day the Sensex went down just 1.63%.

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Also in results, Hero MotoCorp posted earnings for the first time since the split with Honda. The earnings were powered a record-breaking acceleration in sales. Posting a 19.4% rise year on year, net profit stood at 604 crore. And net sales also jumped up 28% to 5,784 crore. Hero MotoCorp sold 1.54 million vehicles during the three months to September—a rise of some 20% year-on-year. Sales have been boosted by customers turning away from increasingly expensive cars and buying two-wheelers instead. Hero MotoCorp announced its earnings after markets had closed. Its shares dropped 0.41% on the BSE to 1984.85.

And finally, Indian markets went into deep red on Tuesday, after concerns about an exodus by foreign investors and poor signals from across the globe. The Sensex plunged 277 points to finish at 16,748. And the Nifty dropped 81 to 5,038.