Investors punish Tech Mahindra stock on weak performance

Firm's Q4 profit dipped 31% to Rs 588 cr due to project cancellations in communication business

Tech Mahindra saw its stock trade the lowest in nine years on Monday after a disappointing fourth quarter, by reporting operating margins at 12 per cent, the lowest among the top-five Indian software exporters.

After falling to Rs 356.65, when it acquired Satyam, the stock closed at Rs 379.30 on the Bombay Stock Exchange, down 11.6 per cent as investors sold the company shares on the back of its poor performance.

Tech Mahindra saw fourth quarter profits dip by 31 per cent to Rs 588 crore as it saw project cancellations in its communication business amidst restructuring of Lightbridge Communications Corporation