Tech Mahindra slumps after dismal Q4 results

Tech Mahindra tumbled 13.12% to Rs 373 at 10:00 IST on BSE after consolidated net profit dropped 31.2% to Rs 588 crore on 0.8% fall in revenue to Rs 7495 crore in Q4 March 2017 over Q3 December 2016.

The result was announced after market hours on Friday, 26 May 2017.

The stock had gained 4.23% in four sessions to settle at Rs 429.35 on 26 May 2017 from a close of Rs 411.90 on 22 May 2017 ahead of the Q4 results.

Meanwhile, the S&P BSE Sensex was down 16.32 points or 0.05% at 31,011.89.

Huge volumes were witnessed on the counter. On the BSE, 13.01 lakh shares were traded in the counter so far as against average daily volume of 4.31 lakh shares in the past one quarter. The stock had hit a low of Rs 357.60 in intraday trade, which is a 52-week low for the stock. The stock had hit a high of Rs 395 so far during the day. The stock had hit a 52-week high of Rs 563.75 on 30 May 2016.

The stock had underperformed the market over the past one month till 26 May 2017, rising 0.3% compared with 2.97% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 14.68% as against Sensex's 7.39% gains.

The large-cap company has equity capital of Rs 487.29 crore. Face value per share is Rs 5.

Tech Mahindra's board of directors recommended a dividend of Rs 9 per share for the year ended 31 March 2017 (FY 2017).

Managing Director and CEO CP Gurnani said that the IT industry is going through a paradigm shift amid changing demand pattern from the clients, technological changes and requirement for significant skill enhancement. The company has responded to these changes proactively by reimagining the business, imbibing a culture of innovation, encouraging reskilling and retraining workforce wherever necessary, he added.

Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering solutions.

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