BENGALURU, Oct 26 Reuters Shares of Indian IT services company Tech Mahindra dropped to nearly a threemonth low on Thursday, a day after the company posted its biggest profit drop in 16 years.

The shares fell as much as 3.9, set for their sixth consecutive session of losses, if trends hold.

The stock was among the top losers in Nifty 50 and the Nifty IT index, which was down 1.4.

Tech Mahindra reported a 61.6 fall in Septemberquarter net profit, its worst performance since March 2007, hurt by higher expenses and weak client spending.

It also disclosed plans to streamline its business through the absorption of three of its units, which it said will result in the reduction of its overheads and help increase operational efficiency.

The company39;s margins on earnings before interest and tax contracted to 4.7 from 11.4 last year, which analysts attributed to a oneoff expense due to the restructuring of various businesses during the quarter.

The company, however, did not specify any restructuringrelated expenses.

We believe the impact of portfolio restructuring and weak demand will weigh on growth and margin in second half of the year and hence, fiscal 2024 as a whole, Nomura analysts said.

Tech Mahindra39;s new deal wins also fell to 640 million from 716 million a year earlier.

Analysts at Kotak Institutional Equities also cited Tech Mahindra39;s restructuring expenses for the sharp revenue and margin miss which worsened due to clientspecific issues in the telecom…