Tech Mahindra tumbles over 16% as net profit disappoints

Shares of Tech Mahindra today slumped over 16% after the company reported a 23.15% fall in net profit for the March quarter. The stock dropped 16.44% to Rs 550.10 on BSE. 

On NSE, it declined 13.42% to Rs 554.30. 

The country's fifth-largest software exporter Tech Mahindra yesterday announced the drop in net profit at Rs 472 crore due to currency headwinds, poor performance of recent acquisitions and a slowdown in large telecom clients. 

The company had posted a net profit of Rs 614.21 crore in the same quarter last fiscal. 

The company's pre-tax margin also saw a big 5 percentage point decline to 15.2% over the December quarter.

Chief Financial Officer Milind Kulkarni said the poor show by LCC acquired last fiscal has hurt the margin by 1.40% and rupee appreciation shaved 0.90% off the bottom line. 

The company's revenues, however, grew 20.9% to Rs 6,116.79 crore in the reported quarter from Rs 5,058.11 crore in the March quarter of 2014.