 "Tech Mahindra hits 52-week low on Q1 warning")
Shares of Tech Mahindra have dipped nearly 7% to Rs 486, also its 52-week low on the National Stock Exchange (NSE), after the information technology (IT) company warned about its April-June quarter (Q1) results.
In a business update to the stock exchange, Tech Mahindra said, Q1 FY16 has some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) margin on a sequential basis.
Seasonally weak mobility business will be a drag on Q1 revenues and EBITDA, H1 B visa will be another drag on margins, it added.
However, the company said, favorable currency movements could help both revenue and margins.
Organization wide there is renewed focus on improving operational levers and cost control parameters, however the impact is expected to be visible only from Q3 FY16 onwards, it added.
At 1211 hours, the stock was down 6% at Rs 489 on the NSE with a combined around 3.6 million shares changed hands on the counter on the NSE and BSE.
In a business update to the stock exchange, Tech Mahindra said, Q1 FY16 has some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxes, depreciation and amortization) margin on a sequential basis.
Seasonally weak mobility business will be a drag on Q1 revenues and EBITDA, H1 B visa will be another drag on margins, it added.
However, the company said, favorable currency movements could help both revenue and margins.
Organization wide there is renewed focus on improving operational levers and cost control parameters, however the impact is expected to be visible only from Q3 FY16 onwards, it added.
At 1211 hours, the stock was down 6% at Rs 489 on the NSE with a combined around 3.6 million shares changed hands on the counter on the NSE and BSE.
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