Tech Mahindra shares tank 10.5% on weak outlook warning

Shares of IT firm Tech Mahindra fell sharply by 10.5% to hit a one-year low after the company warned of weak revenue and earnings in the April-June quarter due to higher visa costs and other headwinds.

Following the news, the stock tumbled 10.44% to Rs 467.40 -- its 52-week low at the BSE. 

On NSE, shares of the company plunged 10.48% to hit its one-year low of Rs 467.10. 

"Q1 FY16 has some headwinds and tailwinds, which could see a risk of marginal decline in both revenue and EBITDA margin on a sequential basis," the company said in a regulatory filing. 

Seasonally weak mobility business, it said, "will be a drag on Q1 revenues and EBITDA". 

Also, H1B visa costs will be a drag on margins. However, "favourable currency movements could help both revenue and margin," it said. 

It also said FY16 organic communication growth could remain subdued due to delayed decision making. Meanwhile, in the stock market, the BSE benchmark Sensex was trading 242.44 points lower at 27,570.20.