Tech Mahindra slumps
Tech Mahindra is among the top five losers on the BSE currently; opening over 4% lower at Rs.1349.65, the stock fell down further to Rs.1322, down 6%. Its 52-week low is at Rs.982.95.
The stock price was pummeled down as its earn Q3 earnings missed all estimates by a large margin.
The consolidated net profit came in at Rs.510 crore, up 3%, which is much lower than widely expected net profit of Rs.625-650 crore. YoY, the fall was much bigger at 61%.
Revenue for the quarter was at 12,957 crore, up 2% (QoQ) and down 5% (YoY).
EBIT margin was at 5.4% v/s 4.7% (QoQ).
The new CEO, Mohit Joshi took over from ex-CEO, CP Gurnani just recently and this is his first quarter as CEO. Joshi put in place an organization restructure and also changed the leadership team. All this came into effect from 1st Jan’24. With the focus being more internal, under a new CEO, it always takes a quarter or two for any company to get back its mojo.