Hexaware Technologies shares slumped 10 per cent on Thursday, after the midcap IT exporter posted disappointing numbers for its first quarter ended March 31, 2016.

Hexaware Technologies’ constant currency revenue growth declined by 1.8 per cent sequentially in Q1, missing Street estimates. Even in rupee terms, Hexaware Technologies’ revenue remained flat at Rs 820 crore against Rs 819 crore in the December quarter.

Hexaware Technologies’ net profit fell 15 per cent sequentially to Rs 84 crore against Rs 99 crore in the December quarter. AProfit had estimated its net profit at 102 crore on sales of Rs 874 crore.

Hexaware Technologies’ EBIT or operating margin fell 130 basis points sequentially to 13 per cent as compared to 14.3 per cent in the December quarter.

G Chokkalingam, founder at Equinomics Research & Advisory, said most of the midcap IT companies have at least reported sequential growth in rupee revenue, so Hexaware’s earnings are disappointing.

“In March quarter, Hexaware failed to show growth in net profit. The stock is stretched as it is still trading at 16-17 times its price earnings after today’s correction without showing any growth. It is difficult for a midcap IT company to justify such valuations. Investors should look at Hexaware when it corrects to Rs 160-170,” he added.

As of 9.49 a.m., Hexaware Technologies shares traded 7.87 per cent lower at Rs 209.60 apiece compared to 0.40 per cent gain in the broader Nifty .