Shares of Tech Mahindra Ltd have lost 35% from their highs in February, far worse than the 16% fall in the Nifty IT index. If the company’s March quarter results are any indication, the underperformance is unlikely to reverse in a hurry.
Dollar revenues dropped 4.3% sequentially, which is a far higher drop than what the Street had estimated. The results were released after market hours on Thursday.
Larger peers such as Tata Consultancy Services Ltd and Infosys Ltd had earlier reported a 1-2.5% sequential fall in revenues, implying greater disruption to Tech Mahindra’s business from covid-19.
Barring financial services, most major verticals saw a sequential fall in revenues. Tech Mahindra derives a notable part of its revenues from the BPO