Tech Mahindra opened lower at Rs.760 and went on to hit an intra day low at Rs.745.30, down over 3.5%.
The company posted a flat set of numbers for Q4FY19 with net profit slipping 7% (QoQ) at Rs.1127 crore. Revenue was flat at Rs.8892 crore. Even the dollar revenue was kind of static at $1268 million.
Operating profit fell 5% to Rs.1368 crore and margins showed a decline of 70 bps at 15.4%.
The company said that the 2.5% sequential de-growth in enterprise business led to the lower earnings. This was on account of some projects getting postponed and some getting closed.
The disappointment on the Street is more on account of the earnings missing the estimates and the fact that the operating margins showed a decline.