Tech Mahindra shares rally nearly 6% on Q1 profit1 min read . Updated: 28 Jul 2020, 02:12 PM IST
On the BSE, the Tech Mahindra stock surged 5.77% to Rs702.40. And on the NSE, it gained 5.74% to Rs702.75
NEW DELHI : Tech Mahindra shares on Tuesday rallied nearly 6% after the IT company reported 1.35% gain in net profit for the first quarter of fiscal year 2021.
On the BSE, the Tech Mahindra stock surged 5.77% to Rs702.40. And on the NSE, it gained 5.74% to Rs702.75.
Tech Mahindra has recorded 1.35% rise in June quarter net profit at Rs972.3 crore amid the Covid-19 pandemic. Its revenue rose 5.23% to Rs9,106 crore as compared with the year-ago period, but it fell 4% sequentially.
The country's fifth biggest software exporter has said it is aiming to emerge stronger by the end of the calendar year 2020.
“We are witnessing a wave of new-age technologies being adopted by the customers as businesses across the globe are actively pursuing digital transformation," C.P.Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, said in a statement on Monday.
“We are well positioned to capture such spends and our endeavour is to be back on the growth path amid increased signs of demand normalisation," Gurnani also said.
As compared to the preceding March quarter, Tech Mahindra’s profit grew 21% in Q1 of FY21 from Rs804 crore.
The IT major has a headcount of 1.23 lakh and total active clients at 981. It also has a cash and cash equivalent of $1.37 billion.
“Cash conversion has been strong while we aim to improve profitability margins as demand normalises," said Manoj Bhat, Chief Financial Officer, Tech Mahindra, in a statement on Monday.
By 2:00 pm, shares of Tech Mahindra were trading at Rs682.35, up 2.68%, on the NSE; and at Rs682.40, up 2.76%, on the BSE.