Shares of IT firm Tech Mahindra on Monday fell sharply by 10.5 per cent to hit a one-year low after the company warned of weak revenue and earnings in the April-June quarter due to higher visa costs and other headwinds.
Following the news, the stock tumbled 10.44 per cent to Rs 467.40, its 52-week low at the Bombay Stock Exchange on a day when the stock market was hit by worries of Greece's possible exit from the eurozone.
“Q1 FY16 has some headwinds and tailwinds, which could see a risk of marginal decline in both revenue and EBITDA margin on a sequential basis,” the company said in a regulatory filing.
In addition, seasonally weak mobility business will be a drag on revenue in the period. And on top of that, the company will be spending more on H1B visas for its employees, which translates into lower margins.
The only good news is that the company expects currency movements to be in its favour, and that might help shore up revenue.
(With agency inputs)