Stocks of Tech Mahindra suffered 60% net erosion in Q3 plunge 6%

New Delhi: Shares of Tech Mahindra on Thursday plunged over 6 per cent after the company reported a 60 per cent decline in net profit to Rs 510.4 crore for the December quarter, largely because of a sharp squeeze in profit margins.

The stock tanked 6 per cent to Rs 1,322 on the BSE.

It fell 6.24 per cent to Rs 1,320.05 on the NSE.

It was the biggest laggard among the Sensex and Nifty firms during the morning deals.

In the broader equity market, the 30-share BSE Sensex traded 584.08 points lower at 70,481.94, and the Nifty fell by 159.55 points to 21,294.40.

For the reporting quarter, its overall revenue from operations declined 4.6 per cent to Rs 13,101 crore from Rs 13,734 crore in the year-ago period.

However, it was a sharp decline in operating profits, with margins narrowing to 5.4 per cent from 12 per cent in the year-ago period, which seems to have impacted the headline profit.