Tech Mahindra gains post Q2 results

The stock rallied 7% to Rs 444 after the company reported dollar revenue growth of 5% on a constant currency basis, sequentially.

Tech Mahindra has rallied 7% to Rs 444 on BSE in early morning trade after the company reported dollar revenue growth of 5% sequentially on a constant currency basis, best among its peers for the quarter ended September 30, 2016 (Q2FY17).

Tata Consultancy Services, Infosys, Wipro and HCL Technologies reported growth of 1%, 3.9%, 0.9% and 2.8%, respectively.  

Revenue in rupee terms increased 3.6% sequentially to Rs 7,167 crore and in constant currency that grew by 5% to USD 1,072 million in Q2FY17.

Net profit was Rs 645 crore, down 14% quarter on quarter (QoQ), due to a one-time restructuring cost of Rs 85 crore. Operating earnings were Rs 1,070 crore, margins flat QoQ at 14.9%, Tech Mahindra said in press release.

“The performance indicates our early investments in new technologies and capabilities are starting to show results,” said Vineet Nayyar, vice-chairman.

At 09:35 am, the stock was up 6% at Rs 439 on BSE, as compared to 0.35% decline in S&P BSE Sensex. A combined 3.45 million shares changed hands on the counter on BSE and NSE so far.