Tech Mahindra tanks 7%; mcap dips Rs 3,570cr on Q1 warning

Shares of Tech Mahindra plunged over 7 per cent, wiping-out Rs 3,570 crore from its market valuation, as the company warned that a seasonally weak mobility business and visa costs will impact its revenue in the April-June quarter.
Shares of the company tumbled 7.19 per cent to settle at Rs 484.35 on the BSE. During the day, it plunged 10.44 per cent to Rs 467.40 -- its 52-week low.
On the NSE, shares of the country's fifth largest IT services exporter, fell sharply by 7.36 per cent to Rs 483.35.
Following the weakness in the stock, the company's market value declined by Rs 3,570.65 crore to Rs 46,572.35 crore.

In terms of volume, 12.98 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
Tech Mahindra today warned that a seasonally weak mobility business and visa costs will impact its revenue in the April-June quarter, forcing the firm to resort to cost control measures and improving operational levers.

The firm said it expects the margins to improve only by the third quarter of the current fiscal, 2015-16.
"Q1 FY16 has some headwinds and tailwinds, which could see a risk of marginal decline in both revenue and EBITDA margin on a sequential basis," the Mumbai-headquartered firm said in a regulatory filing.

"Seasonally weak mobility business will be a drag on Q1 (April-June of 2015-16) revenue and EBITDA. H1 B visa costs will be another drag on margins," the firm said.
It, however, added that favourable currency movements could help both revenue and margins.
Meanwhile, in the broader market the BSE benchmark Sensex fell by 166.69 points to end at 27,645.15.