Shares of Tech Mahindra surged as much as 7.2 per cent to hit intraday high of Rs 444 after the IT company reported better-than-expected earnings in the second quarter of current financial year.
Tech Mahindra reported a 17.5 per cent fall in consolidated net profit at Rs 643.4 crore for the fiscal second quarter that ended on September 30, 2016, but said it looks to grow despite some macroeconomic challenges.
The company had posted a net profit of Rs 780.3 crore for the corresponding period a year ago.
The widely tracked dollar revenues came in better than the Street's estimate. During the quarter Tech Mahindra's revenues in dollar terms grew by 4 per cent quarter-on-quarter, compared with expectations of 1.3 per cent.
Income from operations (net) increased over eight per cent to Rs 7,167 crore in the quarter under review, as against Rs 6,615 crore in the year-ago period, according to a filing to the BSE.
"Our performance during the financial quarter indicates that our early investments in new technologies and capabilities are starting to show results. We look to continue our growth despite some macroeconomic challenges," Tech Mahindra vice chairman Vineet Nayyar said.
"Overall it was a very good quarter for us with the growth well supported by our key communications and enterprises business. We had some marquee wins which align very well with our strategy of catering to the connected world," CP Gurnani, managing director and CEO of Tech Mahindra, said in a statement.
Shares of Tech Mahindra ended 5.2 per cent higher at Rs 435.65.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
