Sensex Recovers From Day’s Low, Tech Mahindra Shares Tank 10.5% 

Tech Mahindra shares fell by 10.5 % to hit a 1-year low after it warned of weak revenue & earnings in April-June qtr

2 min read
(Photo: Reuters)

Shares of IT firm Tech Mahindra fell sharply by 10.5 per cent to hit a one-year low after the company warned of weak revenue and earnings in the April-June quarter due to higher visa costs and other headwinds.

Following the news, the stock tumbled 10.44 per cent to Rs 467.40 -- its 52-week low at the BSE.

On NSE, shares of the company plunged 10.48 per cent to hit its one-year low of Rs 467.10.

“Q1 FY16 has some headwinds and tailwinds, which could see a risk of marginal decline in both revenue and EBITDA margin on a sequential basis,” the company said in a regulatory filing.

Seasonally weak mobility business, it said, “will be a drag on Q1 revenues and EBITDA”.

Also, H1B visa costs will be a drag on margins.

However, “favourable currency movements could help both revenue and margin,” it said.

It also said FY16 organic communication growth could remain subdued due to delayed decision making.

Meanwhile, in the stock market, the BSE benchmark Sensex was trading 242.44 points lower at 27,570.20

(Photo: BSE)
(Photo: BSE)

The benchmark BSE Sensex tanked over 535 points and the NSE Nifty slid below the 8,300 mark in opening trade on across-the-board selling by participants.

A weak trend at other Asian markets was the main trigger for the plunge as investor sentiment was dampened by fears of a possible Greece default.

The 30-share gauge, which had lost 84.13 points in the previous session, hurtled down 535.87 points, or 1.92 per cent, to 27,275.97.

All the sectoral indices were trading in the negative terrain, led by realty, capital goods and banking, with losses up to 3.16 per cent.

Also, the NSE Nifty slipped below the 8,300 mark by skidding 166.45 points, or 1.99 per cent, to 8,214.65.

Brokers said widespread selling by investors as well as funds, in line with a global sell-off on fears that Greece may default on a debt repayment and crash out of the euro zone, soured the mood.

Besides, weakness in the rupee, which turned lower by 24 paise to 63.88 against the dollar in early trade at the forex market, too negatively impacted sentiment, they said.

In Asian markets, Hong Kong’s Hang Seng was down 1.41 per cent while Japan’s Nikkei slumped 1.78 per cent in early trade today.

The Dow Jones Industrial Average, however, ended 0.31 per cent higher in Friday’s trade.

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