The market was in no mood to rescue HCL Tech after its results came in below expectations of analysts.

However, the scrip still managed to rise from the day's low of Rs 152 to Rs 158.65 (down 5.37%) by 10:25 IST on Thursday. Market sources hint that a cadre of the company's management had moved into the scrip at the lower levels.

By 10:25 IST, the scrip of India's fourth largest software company in terms of market capitalisation registered volumes of over 146,000 lakh shares on BSE. In the 14 sessions between 2 and 22 January 2003, HCL Tech lost 13% to Rs 167.65 from Rs 192.90.

Just before commencement of trades today, HCL Technologies announced second quarter ended 31 December 2002 results that showed a 34.6% fall in net profit to Rs 80.59 crore compared to Rs 123.22 crore in the corresponding period of the previous year. Revenues increased 16.6% to Rs 467.93 crore from Rs 401.26 crore.

A capitalmaket.com poll of six software analysts had set for HCL Technologies a net profit of between Rs 86.5 crore and Rs 100.5 crore (Rs 1 billion) for DQ 2002, a fall of 18.5% to 29.8%. Revenues were expected in the range of Rs 467 crore (Rs 4.67 billion) and Rs 482 crore (Rs 4.82 billion) for DQ 2002, a rise of 16.5% to 20%.

Analysts feel the results give a pointer to the fact that the company's margins are under tremendous pressure.

As on 30 September 2002, the promoters held 77.1% stake in the company, while the public and institutions held 6.5% and 5.9%, respectively.