TechM revenue drops in Q1

Bengaluru: Tech Mahindra’s June quarter performance was lacklustre, so much so that its chief executve officer and managing director CP Gurnani said the quarter was one of the toughest in the last five years.

Most IT services companies have had weak results in the first quarter because of the economic environment globally, but Tech Mahindra’s is particularly bad. Revenue dropped 4.2% sequentially and 0.9% year-on-year in constant currency. The sequential decline was led by its CME (communications, media, and entertainment) business, which dropped 9.4%. BFSI, retail, transport & logistics, were weak too. The manufacturing vertical did better, while the technology vertical was flat.