Mumbai: Shares of HCL Technologies Tuesday tanked nearly 10 percent on the bourses although the company posted a 50 percent jump, year-on-year, in net profit for the first quarter ended September 30.
Shares of the company opened weak and then fell 8.71 percent to touch an intra-day low of Rs 400.55 on the BSE, which opened weak and has been trading in the red.
Similarly, on the National Stock Exchange, the company, after opening at Rs 418.80, tanked 9.28 per cent to Rs 399.25.
"Shares of the company tumbled as the outlook for the IT sector looks muted amid the global economic slowdown," Kejriwal Research and Investment Services (KRIS) Director Arun Kejriwal said.
The Indian IT industry - which earns about 85 percent of its revenues from the US and the European markets - is likely to feel pricing pressures and see a drop in new orders amid recessionary fears in the developed economies, Kejriwal added.
HCL Tech was later trading at Rs 401.20, down 8.57 percent on the BSE, and at Rs 400.70, down 8.95 percent on the NSE.
The company's net profit was Rs 496.7 crore for the September quarter of its fiscal (July-June), up 50 percent from the year-ago period when it stood at Rs 331.1 crore.
The company's revenues were Rs 4,651.3 crore during the quarter, up 25.4 percent from Rs 3,708.1 crore in Q1, FY'11.
The BSE Sensex was down over 300 points or 1.8 percent in the afternoon trade.
First Published: Tuesday, October 18, 2011, 14:27