Tech Mahindra shares plunge over 4% as Q1 profit drops

New Delhi: Shares of Tech Mahindra on Thursday plunged by more than 4 per cent in the morning trade on the exchanges, a day after the IT services company reported a 38 per cent fall in June quarter net profit at Rs 692.5 crore.

In the initial trade, the stock declined 4.55 per cent to Rs 1,092 apiece on the BSE.

On the NSE, a similar movement was also seen in the scrip, where it tanked by 4.50 per cent to Rs 1,091.75 apiece.

Meanwhile, the 30-share BSE Sensex was trading 211.07 points or 0.32 per cent higher at 66,918.27 points.

Tech Mahindra on Wednesday reported a 38 per cent fall in June quarter net profit at Rs 692.5 crore due to a sharp narrowing of the profit margins.

The Mahindra group company had reported a net profit of Rs 1,131.6 crore in the corresponding April-June period last year. In the preceding quarter, the same stood at Rs 1,117.6 crore.

Its revenues slid to Rs 13,159 crore in the reporting quarter from Rs 13,718 crore in the preceding March quarter, and was only 3.5 per cent up when compared to the year-ago period.