HCL Tech opened over 2% weak at Rs.1077 and slumped down further by more than 7% to Rs.1020.70 and remains steadfast among the top five losers on the BSE.

The stock price slid after a lower revision of the guidance by the management. Speaking at company’s investor meeting held in New York on December 8, the CEO, C Vijayakumar said: “In October, we had increased our guidance from 13.5% to 14.5%. We had certain assumptions which helped us to devise 16-17% services growth. We had assumed certain furloughs. But we are seeing a bit higher. BFSI is the segment which is little bit impacted by furloughs, followed by tech companies."

The management expects revenue growth guidance for FY23 likely to come in at the lower end of its 13.5-14.5% year-on-year band in constant currency (CC) terms.

HCL Tech's management also hinted that price increases are now more selective than what they were six to nine months ago, meaning the ability to increase costs and improve or keep margins stable is under threat.