Shares of Oracle Financial Services Software Ltd dropped more than 4 percent in trade on Wednesday, extending their losses for a second day, mimicking the fall in the share price of the company’s parent firm Oracle Corp. after it reported a weak set of earnings for the first quarter of fiscal 2024.

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The Oracle Corp. stock ended 13.5 percent lower in the US trading on Tuesday, witnessing its biggest single-day decline since March 2002, as Q1 numbers missed market estimates.

Oracle’s cloud revenue growth stood at 30 percent during the quarter under review compared with 54 percent in the prior quarter. Notably, cloud has been the fastest growing segment for the Indian IT companies and any indication of slowdown in the segment is a big negative for the sector.

Reacting to the development, the Oracle Financial Services Software stock fell another 4.3 percent on Wednesday to hit an intra-day low of Rs 4,100 on BSE after losing 2.5 percent on Tuesday.

Interestingly, the stock had hit a new 52-week high value of Rs 4,528.95 on Monday, September 11, just before Oracle Corp. announced its Q1 earnings. The share price has gained over 31 percent in the last one year, compared with an 11 percent increase in the benchmark Sensex during this period.

Oracle Financial Services Software, a subsidiary of Oracle Corp, is mainly engaged in the business of providing information technology solutions to the financial services industry worldwide. The company has a suite of banking products, which caters to the transaction processing and compliance needs of corporate, retail, investment banking, treasury operations and data warehousing.

The company had informed last month that its net sales grew over 4 percent to Rs 1,462.4 crore in the quarter ended June 2023 compared with the year-ago period.

Quarterly net profit had inched up 1.9 percent to Rs 501 crore during the quarter compared with the same quarter a year ago.

Shares of Oracle Financial Services were trading 2.33 percent lower at Rs 4,187 apiece on BSE at 11:20 AM.