The company is collaborating with a bio-scientist for plausible therapeutic drugs and research laboratories for synthesising and testing these compounds
Wage hikes and promotions have been deferred indefinitely. Some firms have cut down travel allowance as well.
Tech Mahindra employees were reportedly informed that shift allowance payment between Rs 5,000 and Rs 10,000 per employee will be discontinued from May 1.
The company expects short term setbacks for businesses due to coronavirus pandemic, however, telecom clients will support business growth.
Since this doesn’t seem to be a fundamentally driven rally (14% rally in April), we are not confident of market sustaining at higher levels, says Sundar Sanmukhani.
In the medium term, HUL should farewell as it will be a key beneficiary of the rural demand recovery and one of the least impacted companies from COVID-19 led disruptions.
Brokerages have a mixed view on the stock. While some maintained their positive stance on the stock, some cut the target prices and some analysts downgraded the stock to sell.
Tech Mahindra March quarter results were below analysts estimates, and the pain seen in the March quarter is likely to extend in Q1FY21, suggest experts.
The later part of the results season is always very weak, which could also pull the markets lower in the second half of May, Vikas Jain, Senior Research Analyst at Reliance Securities, told Moneycontrol.
The auto index has given a return of 30 percent in the last 1 month from its low due to the expectation that the government’s stimulus package on the economy will benefit the industry & sales will improve in Q2.
Revenue impact will pressurize the margins. Goal is to get back to margin to teens by a year.
The company is also seeing reduction in discretionary spend and volumes as customers across sectors are bracing for the COVID-19 impact.
The stock fell quite sharply not only during the March quarter, but also in full financial year 2019-20 and year-to-date 2020, down 25.8 percent, 27.1 percent and 30.6 percent respectively.
Brokerage firm Kotak Institutional Equities expects a 21.9 percent year-on-year (YoY) fall and 22.8 percent quarter-on-quarter (QoQ) fall in Tech Mahindra's adjusted net profit at Rs 884 crore for Q4FY20.
Uttar Pradesh, Delhi and Karnataka have already said that companies will have to keep premises closed during the lockdown.
He has 3 mantras for CEOs to ensure smooth functioning of operations during these tough times.
Tech Mahindra will acquire 100 per cent stake in the company for $64 million or about Rs 460 crore out of which $42 million or about Rs 300 crore will be paid at closing and the remaining is linked to the financial performance of the Microsoft customer account for the upcoming three years, Agrawal said.
CP Gurnani, CEO of Tech Mahindra, revealed that the mood of the tech CEOs was "very positive".
The company's earnings per share (EPS) was at Rs 13.13 against Rs 13.55 YoY and Rs 12.88 QoQ.
The company reported a net profit of Rs 1,202.9 crore in the corresponding quarter of the previous financial year and Rs 1,123.9 crore in Q2FY20.
Antique Stock Broking expects a 17 percent YoY decline in Tech Mahindra's net profit to the tune of Rs 1,010.9 crore, while EBITDA, too, is expected to see a 13 percent YoY fall to Rs 1,500.1 crore.