Tech Mahindra dips 4% as management flags growth moderation, budget cuts

Tech Mahindra is witnessing moderation in growth, slower decision-making for projects, cuts in discretionary spending and shrinking budgets for short-term tactical deals, its management said

Deepak Korgoankar Mumbai
Tech Mahindra

Tech Mahindra

Shares of Tech Mahindra dipped 4 per cent to Rs 996.40 on the BSE in Tuesday’s intra-day trade due to the management's weak commentary post the Q3FY23 results. Given the tough macro-economic environment, the company is witnessing moderation in growth, slower decision making for projects, cuts in discretionary spending and shrinking budgets for short-term tactical deals, the management said. 

Motilal Oswal Financial Services (MOFSL) expect Tech Mahindra to deliver dollar revenue growth of 10.6 per cent in FY23 (including a 400 bps inorganic impact) followed by an 8 per cent growth in FY24E, which is among the weakest in their coverage universe. "Tech Mahindra should see pressure in FY24 due to its focus on growth over margins, softness in its top accounts and a long revenue conversion cycle amid pressure on small deals", it said.

Tech Mahindra reported a 5.3 per cent fall in its net profit for the December quarter (Q3FY23) at Rs 1,2

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First Published: Jan 31 2023 | 10:46 AM IST

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