Tech Mahindra hits 52-week low

Tech Mahindra slumped 7.74% to Rs 481.50 at 14:30 IST on BSE after company said that Q1 June 2015 results have some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA margin on sequential basis.

The company made announcement during trading hours today, 29 June 2015.

Meanwhile, the BSE Sensex was down 230.76 points, or 0.83%, to 27,581.08.

On BSE, so far 9.84 lakh shares were traded in the counter, compared with an average volume of 4.2 lakh shares in the past one quarter.

The stock hit a high of Rs 520 in intraday trade. The stock hit a low of Rs 467.40, also a 52-week low for the stock. The stock hit a record high of Rs 749.50 on 2 February 2015.

The stock had underperformed the market over the past one month till 26 June 2015, falling 18.52% compared with 1.02% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 19.85% as against Sensex's 1.29% gain.

The large-cap IT services provider has an equity capital of Rs 481.88 crore. Face value per share is Rs 5.

In its business update, Tech Mahindra said that its Q1 June 2015 results have some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA (earnings before interest, taxation, depreciation and amortization) margin of the company on sequential basis. Tech Mahindra said that a seasonally weak mobility business will be a drag on Q1 revenues and EBITDA of the company. H1 B visa costs will be another drag on margins, the company said. On the other hand, favourable currency movements could help both revenue and margins, the company said.

For the current financial year, the management's endeavour will be grow enterprise business in line or above industry. Improving EBITDA margin is one of the top priorities of the company for FY 2016, Tech Mahindra said. The company further said that the organic growth of the communications business of the company could remain subdued in FY 2016 due to delayed decision making. The deal pipeline of the communications business remains healthy, the company said.

Tech Mahindra's consolidated net profit fell 41.38% to Rs 472.01 crore on 4.34% rise in total income to Rs 6051.50 crore in Q4 March 2015 over Q3 December 2014.

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