
Tech Mahindra shares tank 5%; here's why
Tech Mahindra reported a 39% decline in its profit to ₹693 crore as against ₹1,131 crore in the corresponding period last year, which was lower than analyst expectations of ₹1,100 crore.
Tech Mahindra reported a 39% decline in its profit to ₹693 crore as against ₹1,131 crore in the corresponding period last year, which was lower than analyst expectations of ₹1,100 crore.
Brokerages have turned bearish on the stock after the IT heavyweight reported lower than expected earning in the June quarter.
The IT heavyweights are expected to report weak earnings in June quarter with flattish sequential growth in CC terms due to soft demand outlook with limited large deal ramp ups.
Shares of TCS, Infosys, Wipro, HCL Technologies, and Tech Mahindra fell up to 2%, in sync with a weak broader market.
As US recession looms large, Indian IT services companies are bracing for a hard landing.
Citi has downgraded Tech Mahindra to “sell” from “neutral” and cut the target price to ₹955 from ₹1,100.
Mohit Joshi's departure marks the exit of the only President left at Infosys after Ravikumar last year.
Tech Mahindra share price declined 3.8% to hit an intraday low of ₹996.40 on the BSE, while it shed 6% in a week.
Indian IT firms generate around 60-65% of its revenues from the US market and 20-25% from the European market.
Revenue of the IT services firm rose 20% year-on-year to ₹13,129 crore.