New Delhi: Shares of Tech Mahindra on Thursday plunged over six per cent after the company reported a 60 per cent decline in net profit to Rs510.4 crore for the December quarter, largely because of a sharp squeeze in profit margins.
The stock tanked 6.12 per cent to settle at Rs1,321.60 on the BSE. During the day, it tanked 6.76 per cent to Rs1,312.50. It fell 5.89 per cent to Rs1,325 on the NSE. It was the biggest laggard among the Sensex and Nifty firms.
The company’s market capitalisation (mcap) eroded Rs 8,407.73 crore to Rs1,29,011.81 crore. In the broader equity market, the 30-share BSE Sensex declined 359.64 points to settle at 70,700.67, and the Nifty fell 101.35 points to 21,352.60.
For the reporting quarter, its overall revenue from operations declined 4.6 per cent to Rs 13,101 crore from Rs 13,734 crore in the year-ago period. However, it was a sharp decline in operating profits, with margins narrowing to 5.4 per cent from 12 per cent in the year-ago period, which seems to have impacted the headline profit.
