Tech Mahindra shares drop nearly 5% as Q2 profit declines

New Delhi: Shares of Tech Mahindra declined nearly 5 per cent on Thursday morning after the IT company posted a 61 per cent decline in consolidated net profit in the July-September quarter.

The stock fell 4.61 per cent to Rs 1,089 on the BSE.

At the NSE, it dropped 3.85 per cent to Rs 1,098.15.

The stock was the biggest laggard on both BSE Sensex and Nifty during the morning deals.

Tech Mahindra posted a 61 per cent decline in consolidated net profit to Rs 505.3 crore in the July-September quarter mainly on account of reduced spending by clients.

The company had registered a net profit of Rs 1,299.2 crore in the year-ago period, according to a regulatory filing on Wednesday.

The consolidated revenue from operations of the company declined by 2 per cent to Rs 12,864 crore during the reported quarter from Rs 13,129.5 crore in the September 2022 quarter.

Tech Mahindra posted the highest decline of 11.5 per cent in the communications, media and entertainment vertical on a year-on-year basis followed by a 6.3 per cent dip in the banking, financial services and insurance business, 4.6 per cent in the retail, transport and logistics vertical.

Europe business of Tech Mahindra declined by 8.6 per cent, America's by half a per cent and rest of the world by 11 per cent.