Tech Mahindra Shares Dive After Revenue Declines

Tech Mahindra's shares dropped nearly 6% as the company's revenues fell by 1.2% during the June quarter. Despite a 23% rise in net profit to Rs 851 crore, the stock plummeted to Rs 1,445.50 on the BSE. Recent restructuring under new CEO Mohit Joshi aims for better performance next fiscal year.

Shares of IT services firm Tech Mahindra on Friday slumped nearly 6 percent after the company's revenues declined by 1.2 percent during the June quarter.

The stock tanked 5.52 percent to Rs 1,445.50 on the BSE.

At the NSE, it tumbled 5.60 percent to Rs 1,444.25 apiece.

The stock emerged as the biggest laggard among the Sensex and Nifty firms.

Tech Mahindra on Thursday reported a 23 percent jump in consolidated net profit to Rs 851 crore for the June 2024 quarter.

The Mahindra group company had posted a net profit of Rs 692.5 crore in the year-ago period.

The company, which began a three-year strategic restructuring under a new head recently, saw its revenues decline by 1.2 percent to Rs 13,005 crore during the reporting quarter.

Its new managing director and chief executive Mohit Joshi said the performance in FY25 will be better than the year-ago period.