India`s Tech Mahindra misses Q2 profit view as tech spends shrink
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India's Tech Mahindra on Wednesday missed second-quarter profit estimates, as clients cut back spending amid a tough macroeconomic environment.
The information technology (IT) services provider's net profit fell 61.6% to 4.94 billion rupees ($59.4 million) for the quarter ended Sept. 30, from 12.85 billion rupees a year ago.
Consolidated revenue from operations came in at 128.64 billion rupees, down 2.02% year-on-year. Analysts polled by LSEG had expected a profit of 7.07 billion rupees on a revenue of 131.35 billion rupees.
India's IT industry has been grappling with shrinking tech spending as businesses in the U.S. and Europe, from where it draws the bulk of revenue, cut back investments and delayed closing deals amid fears of an economic slowdown.
Top IT services providers Tata Consultancy Services and Infosys reported lower-than-expected revenues while Infosys and HCLTech cut their annual revenue forecasts earlier this month.
Tech Mahindra's new deal wins fell to $640 million from $716 million a year ago.
($1 = 83.1360 Indian rupees)
