Tech Mahindra, a specialist in digital transformation, consulting and business re-engineering, witnessed a sharp fall in share price on Monday after the company updated investors about its April-June quarter earnings that are expected to be announced in July.
The company said, 'Q1FY16 has some headwinds and tailwinds which could see a risk of marginal decline in both revenue and EBITDA margin a sequential basis.'
'Seasonally weak mobility business will be a drag on Q1 revenues and EBITDA. H1 B visa costs will be another drag on margins,' it explained.
The company also said FY16 organic communication growth could remain subdued due to delayed decision making.
Shares of the company declined Rs 40.2, or 7.7%, to trade at Rs 481.70. Total volume of shares traded on the bourses today was higher by 1,712.96% to 9,635,762 compared with 22-day average volume of 531,493. (2.27 p.m., Monday)