Tech Mahindra declines 8% on disappointing Q4 result; what brokerages say

Shares of Tech Mahindra declined as much as 7.8 per cent to Rs 503.45 apiece on the BSE on Monday after the company on Thursday posted lower-than-expected numbers for the quarter ended March 2020.

At 10:26 am, the stock was trading over 6.5 per cent lower at Rs 510.25 as against nearly 5 per cent fall in the benchmark S&P BSE Sensex.

The information technology (IT) services company on Thursday missed the profit estimates for Q4FY20 on higher employee costs and a one-time impairment charge even as the company said it was expecting a recovery in demand in the medium term.

The Pune-headquartered firm reported Rs 804 crore in consolidated net profit for the March quarter (Q4FY20), a decline of 29.1 per cent on year-on-year (YoY) basis.