HCLTech , India's third-largest software company, posted a smaller-than-expected December-quarter revenue on Monday, with clients holding back discretionary tech spending amid macroeconomic uncertainties.

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.

HCLTech’s Q3 net profit rose 8.4% quarter-on-quarter (QoQ) to ₹4,591 crore, slightly below the CNBC-TV18 poll estimate of ₹4,625 crore. Revenue in rupee terms increased 3.6% QoQ to ₹29,890 crore, also missing the estimate of ₹30,

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.

The company also narrowed its revenue growth forecast for the current fiscal year, reflecting the challenges facing the Indian tech industry amidst global economic uncertainty.

During the quarter under review, the IT firm's revenue from operations moved up 5.08 per cent to Rs 29,890 crore from Rs 28,446 crore in the corresponding period last fiscal.

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.