HCLTech , India's no. 3 software services provider, plunged 8% on Tuesday after reporting a smaller-than-expected quarterly revenue and as a slew of brokerages cut their ratings on the shares.

HCLTech outperformed analyst estimates on both fronts. A Bloomberg survey of 24 analysts expected HCLTech to report $3.5 billion in revenue and a similar survey of 22 analysts expected the company to report $537 million in net profit.

HCLTechs software revenue growth however declined 2.1% YoY in constant currency terms as it failed to close some deal renewals as well as new deals. Consolidated revenue in the three months ended December grew 5.

By Manvi Pant (Reuters) -Shares of HCLTech plunged nearly 10% on Tuesday, set for their worst session since September 2015, after India's No. 3 software services provider missed quarterly revenue estimates and raised only the lower end of its full-year sales outlook.

IT company HCLTech on Monday reported a 5.54 per cent uptick in consolidated net profit to Rs 4,591 crore for the December quarter as the CEO expressed optimism for improvement in the demand environment and discretionary spending and raised the revenue growth guidance.