Tech Mahindra shares decline nearly 4%

Shares of Tech Mahindra settled nearly 4 per cent lower on Thursday, a day after the IT services company reported a 38 per cent fall in its net profit in the June quarter.

In the initial trade, the stock declined 4.55 per cent to Rs 1,092 apiece on the BSE and closed 3.82 per cent lower at Rs 1,100.30 per piece.

On the NSE, the scrip opened at Rs 1,111 and then fell to a low of Rs 1,082.30 and later ended 3.62 per cent down at Rs 1,101.85 per share.

In volume terms, 1.76 crore equity shares were traded on the NSE and 5.73 lakh shares were traded on the BSE.

On Thursday, the 30-share BSE Sensex closed 440.38 points or 0.66 per cent lower at 66,266.82 points while Nifty tanked 118.40 points to finish at 19,659.90 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.