Shares in Tech Mahindra fell a huge 12 per cent in trade after its Q4 results were a huge disappointment.
The fall in profits was largely on the back of cross currency headwinds and hike in salaries.
"We have seen one of the highest growth rates this year. Our Q4 results were impacted by macroeconomic factors like cross currency headwinds and salary increases.
We will endeavor to work on improving our operating metrics to achieve synergy with our recent acquisitions," Tech Mahindra Executive Vice Chairman Vineet Nayyar said.
None of the big tech majors including Infosys, TCS, Wipro and HCL Tech performed better than expectations. Most of these companies have been impacted by cross currency worries.
Analysts say there maybe more downside in select IT stocks, especially if the rupee gains against the dollar.
It would be interesting to see how most of the companies fare in the first quarter of 2015-16, which is considered a good quarter for the IT industry.