Mumbai: Hexaware Technologies Ltd fell as much as 9.53% on Thursday, its steepest fall since 24 August 2015, after the company reported March quarter earnings that failed to meet market expectations.

Intraday, the stock touched a low of 206.50, a level last seen on 21 January, before closing 0.50% lower at 227.10.

The scrip has declined for 12 consecutive sessions. Since 18 April, it is down over 12.1%, while it has shed 5.66% so far this year.

The company reported a March quarter net profit of 84.19 crore against 83.35 crore a year ago, a marginal rise of 1%. Income from operations rose 15% from a year ago to 820.21 crore.

According to a Bloomberg poll of 13 analysts, the company was expected to post a net profit of 104.80 crore and net sales of 849.50 crore.

The company posted dollar revenues of 121.70 million, down 1.9% quarter-on-quarter against analysts’ estimates of 1.6% growth. Ebit (earnings before interest and taxes) margin was down 140 basis points in the quarter at 12.9%, versus analyst estimates of 16.1%.

“The company posted dismal results with declines in revenue and margins that were materially below expectations. The internals were weak with only three segments (BFSI, APAC and Business Intelligence and Analytics) showing positive revenue growth; all else was negative. Results reinforce our cautious stance of less conviction on growth sustainability and expensive valuation. We expect material Street revenue and EPS (earnings per share) estimate cuts and expect the stock to react negatively to results," international brokerage firm Nomura said in a note to its investors.

“The weak start of the year makes achievement of double-digit growth difficult given the steep asking rate of 6% q-q over 2Q-4Q vs. management indications of beating industry growth. In addition, it also makes achievement of company guidance of flattish margins in FY16F unlikely (versus FY15 EBIT margins of 17.1%). In 1Q EBIT margin was 12.9%," it added.

The broking firm retained its “reduce" rating on the stock and cut its target price to 200 from 228 earlier.

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