Tech Mahindra slips 4% after weak Q2; here is what investors may do

Tech Mahindra share price NSE, Tech Mahindra Q2 results: Tech Mahindra on Thursday, October 26, slipped as much as nearly 4 per cent to touch the day's low of Rs 1,098.15 on the NSE in early morning deals after the IT company reported its quarterly financial results after market hours on October 25. The counter finished 1.94 per cent lower at Rs 1,119.95 on NSE.

The company reported a 61 per cent year-on-year (YoY) 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.

The company's consolidated revenue from operations 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. Read more

Here's how the counter moved on Thursday, October 26: 

Source: NSE

Tech Mahindra dividend 2023

Tech Mahindra announced an interim dividend of Rs 12 per equity share of face value of Rs 5 each, i.e., a 240 per cent payout.

Tech Mahindra record date 2023

The IT company has fixed November 2, 2023, as the record date, and the interim dividend shall be paid on November 21.

EDITOR'S TAKE | Extremely weak results on all parameters

Zee Business Managing Editor Anil Singhvi sees support for Tech Mahindra futures coming in at Rs 1,100 and Rs 1,110 levels, and expects a higher level at Rs 1,155. He points out that the IT firm's results are extremely weak on all fronts.

Tech Mahindra share price target: Here's how some of the top brokerages view Tech Mahindra after the company's quarterly report:

HSBC has maintained a hold call on the counter. The brokerage has reduced the target price to Rs 970 from Rs 1,100. Another poor quarter, revenue and margins both missed already muted expectations, the brokerage in its note said. "New CEO gave glimpses of changes he intends to drive, but recovery seems likely to be very gradual," the brokerage added.

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