Tech Mahindra is among the top five losers on the BSE; the stock price fell 4% to an intraday low at Rs.996.40; it has recovered a bit but continues to trade in the red at Rs.1004. Its 52-week low is at Rs.944.10.

More than the earnings, the market is more concerned with the management's weak commentary post the Q3FY23 results. The management said, “ Given the tough macro-economic environment, the company is witnessing moderation in growth, slower decision making for projects, cuts in discretionary spending and shrinking budgets for short-term tactical deals.”

For Q3FY23, the company reported a 5% (YoY) decline and a flat, 0.9% rise sequentially in its net profit.

Revenue was up 20% (YoY) and up 5% (QoQ) at Rs.13,735 crore. On Constant Currency (CC) front, it reported a 0.2% (QoQ) growth and thanks to the rise in dollar, dollar revenue was up 2% at $1668 million.

EBIT margin improved 60 bps to 12% led by restructuring in low-margin assets, increased offshoring and rigorous focus on improving quality revenues.

The company won total contract value (TCV) of $795 million during the quarter, up 11% (QoQ).