Global IT services giant Tech Mahindra Ltd. reported macroeconomic uncertainty weighed on earnings during its fiscal first quarter ended June 30. Revenue fell 0.9% year over year on a constant currency basis in the first quarter to $1.60 billion. The decrease was 1.9% on a reported basis.

“Our results this quarter reflect the uncertainty in the global economy and the IT sector,” Managing Director and CEO CP Gurnani said in a press release. “We are confident that we have the right strategy and the right team to overcome this temporary setback and deliver long-term value for our customers and shareholders.”

Tech Mahindra’s Americas revenue rose 1.4% year over year. However, European revenue fell by 5.4% year over year, and revenue from the rest of the world fell 5.2%.

By industry, revenue in Tech Mahindra’s largest industry served in terms of revenue, “communications, media and entertainment,” fell by 8.2%. However, revenue in the company’s second-largest segment, “manufacturing,” rose by 8.6%.

Total headcount fell by 6.2% year over year to 148,297.

Profit after tax fell 38.0% to 6.93 billion Indian rupees (US$84.4 million).

“This quarter was a challenging one for us as revenue growth faced strong headwinds, and that had an impact on profitability,” Tech Mahindra CFO Rohit Anand said in a press release. “We have taken swift and decisive actions to address these issues and improve our execution.”

Share price and market cap

Shares in Tech Mahindra closed down 1.15% to 1,143.20 Indian rupees (US$13.97) today in India; shares were 10.04% below their 52-week high, according to FT.com. The company had a market cap of 1.13 trillion Indian rupees (US$13.81 billion).