Tech Mahindra Q3 profit slides as expenses jump on macro challenges

Tech Mahindra reported a fall in third-quarter profit on Monday, hurt by higher expenses and a subdued performance by its communications division.

The company’s consolidated net profit fell 5.3 per cent to 12.97 billion rupees ($159.15 million) for the quarter-ending Dec. 31, from 13.69 billion rupees a year earlier.

“We are witnessing moderation in growth, given the tough macroeconomic environment,” CP Gurnani, chief executive officer said.

Large Indian IT service providers have reported a mixed bag of earnings so far as the pandemic-driven boom is slowly being replaced by tighter client spending due to growing fears of a recession.