Tech Mahindra Shares Fall Over 2 Pc As Q2 Profit Declines; Mcap Down Rs 2,500 Crore

Tech Mahindra falls over 2% after posting a 61% decline in net profit for the second quarter. This IT company's stock dropped 4.61% to Rs 1,089 during the day on the BSE, with a market valuation of Rs 1,08,872.61 crore.
Tech Mahindra
Tech Mahindra

Shares of Tech Mahindra ended over 2 per cent lower on Thursday after the IT company posted a 61 per cent decline in consolidated net profit in the July-September quarter.

The stock fell 4.61 per cent to Rs 1,089 during the day on the BSE before settling at Rs 1,116, down 2.25 per cent.

At the NSE, it dropped 3.85 per cent to Rs 1,098.15 in intra-day trade. The stock later settled at Rs 1,119.95, registering a decline of 1.94 per cent.

The company's market valuation slipped Rs 2,500.69 crore to Rs 1,08,872.61 crore.

In traded volume terms, 1.32 lakh shares of the company were traded at the BSE and over 70.99 lakh shares at the NSE during the day.

Tech Mahindra posted a 61 per cent decline in consolidated net profit to Rs 505.3 crore in the September quarter, mainly on account of reduced spending by clients.

The company had registered a net profit of Rs 1,299.2 crore in the year-ago period, according to a regulatory filing on Wednesday.

The consolidated revenue from operations of the company declined by 2 per cent to Rs 12,864 crore during the quarter from Rs 13,129.5 crore in the year-ago period.

Tech Mahindra posted the highest decline of 11.5 per cent in the communications, media and entertainment vertical on a year-on-year basis, followed by a 6.3 per cent dip in the banking, financial services and insurance business, 4.6 per cent in the retail, transport and logistics vertical.

Europe business of Tech Mahindra declined 8.6 per cent, America's by half a per cent and the rest of the world by 11 per cent.

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