India-based multinational IT services giant Tech Mahindra Ltd. yesterday 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 USD 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 European revenue fell by 5.4% year over year, and revenue from the rest of the world fell 5.2%. However, Americas revenue rose 1.4% year over year.

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 INR 6.93 billion (USD 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. “We have taken swift and decisive actions to address these issues and improve our execution.”

Shares in Tech Mahindra closed down 1.15% to INR 1,143.20 (USD 13.97) yesterday in India; shares were 10.04% below their 52-week high. The company had a market cap of INR 1.13 trillion (USD 13.81 billion).