Tech Mahindra Slumps 4% On Warning Of Decline In Margin And EBITDA

Business

oi-Sunil

By Sunil Fernandes

Published: Monday, June 29, 2015, 12:13 [IST]

Shares in Tech Mahindra slumped 6 per cent after the company said that a seasonally weak mobility business will be a drag on Q1 revenues and EBITDA.

The shares of the company were last quoting at Rs 488 on the National Stock Exchange, down almost 7 per cent. The stock also hit a 52-week low of Rs 486 today and has fallen from a high of Rs 748 in Feb 2015.

The company said that H1B visa costs would be another drag on its performance.

"Investment in digital technologies, R&D growth factories, will continue in accelerated mode", the company said in its release.

Meanwhile, the company has said that organisation wide there is a renewed focus on improving operational levers, however, the impact of this would be visible only from Q3 FY 2016.

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