Shares of tech giant HCL Technologies Ltd fell as much as 5% in early trade on Friday after the company said it expects revenue growth for the current fiscal year to be at the lower end of its 13.5-14.5% guidance range.

The company’s management made the remarks at an analyst meeting held overnight. HCL Tech blamed macroeconomic volatility and a higher-than-expected furlough in the December quarter for the fallout behind the guidance.

In its September quarter earnings, management raised its full-year revenue guidance to 13.5-14.5% from a previous range of 12-13%.

HCL Tech’s management also hinted that price increases are more selective now than they were six to nine months ago. According to a report by Nirmal Bang, HCL Tech also highlighted that a greater degree of vendor consolidation is underway than recently, not only due to challenging macros but also due to some of the top 10 global service offerings quotient being eliminated with the risk associated with them.

Management reiterated that it would stick to its services and P&P business models, adding that the latter is a long-term bet, not unlike it was on infrastructure management services 20 years ago when few believed it.

A report from Credit Suisse warned that HCL Tech would be the hardest hit, as Indian IT firms face a high risk of revenue cuts in FY2024. The firm believes HCL Tech is at high risk of a 20%+ valuation revision and will remain neutral on the stock.

Shares of HCL Technologies fell 5.5% to Rs 1,041.60, the worst performer on the Nifty50 index.