Tech Mahindra Q4 net dips 31% to Rs 588 cr; LCC restructuring hits margins

Revenue rises 9%

IT services major Tech Mahindra said fourth quarter profits declined by 31 per cent to Rs 588 crore as it saw project cancellations in its communication business amidst restructuring of Lightbridge Communications Corporation (LCC), a US firm it acquired in 2015.

Margins, calculated on sales minus revenue, stood at 12 per cent, the lowest in two years and the weakest among the top five Indian IT services firms. Tech Mahindra saw revenues grow 8.9 per cent to Rs 7,495 crore in the January to March quarter.

Market analysts maintained a 'Buy' rating for Tech Mahindra despite the dip in profitability in fourth