The stock of HCL Technologies fell more than 3 per cent on Thursday, as its earnings marginally fell short of market expectations for the June quarter. But the company did do much better than Infosys and Wipro, while falling behind TCS in the growth rates of key financials.

Though revenue growth sequentially in dollar terms was a healthy 3.4 per cent for HCL, it still disappointed markets. Its EBIT margins too fell marginally to 24.2 per cent, when an expansion was expected.

Broad-based performance

But in general, HCL’s performance in the June period has been broad-based and better than many of its peers.

Its key verticals such as financial services and telecom led the growth. The company’s infrastructure services offering led the charge in delivering revenues during the quarter.

The stock has run up more than 75 per cent in the last one year and has been a heavy outperformer compared to peers. At the current market price, the stock trades at more than 17 times FY14 earnings, and trades at a premium over Infosys and Wipro.

The stock correction may be more due to a general correction in light of its hectic run over the past one year.

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