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

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