Tech Mahindra share hits fresh 52-wk high as Q2 profit zooms 47%

Tech Mahindra share price: Shares of IT major Tech Mahindra were in demand on Monday, October 21, 2024. The Tech Mahindra scrip rose as much as 4.34 per cent to hit a fresh 52-week high of Rs 1,761.30 per share. 

The surge in Tech Mahindra share price came after the company reported a strong set of September quarter of financial year 2025 (Q2FY25) results on Saturday, October 19.

The Pune-headquartered company’s profit climbed 46.8 per cent quarter-on-quarter (Q-o-Q) to Rs 1,250.1 crore in the September quarter of financial year 2025 (Q2FY25), from Rs 851.5 crore in the previous quarter of the same financial year (Q1FY25).

 

The company’s topline, also known as revenue from operations, rose 2.4 per cent sequentially to Rs 13,313.2 crore in Q2FY25, from Rs 13,005.5 crore in Q1FY25.

At the operating level, earnings before interest and taxes (Ebit) jumped 16.2 per cent quarter-on-quarter (Q-o-Q) to Rs 1,280.4 crore in the September quarter of FY25, from Rs 1,102.3 crore in the June quarter of FY25. Consequently, Ebit margin expanded 110 basis points (bps) to 9.6 per cent in Q2FY25, from 8.5 per cent in Q1FY25.

Apart from that, the company’s dollar revenue rose 1.9 per cent sequentially to $1,589 million, as opposed to $1,559 million.

The company further announced that the new deal wins’ total contract value (TCV) stood at $603 million for the quarter under review.

Tech Mahindra dividend 

The board of directors also approve an interim dividend of Rs 15 per share 

“This quarter we see consistent performance around increasing deal wins, revenue growth, cost optimization and steady free cashflow generation as we continue our journey towards FY27 stated targets. In line with our capital allocation policy the board has declared an interim dividend of Rs. 15 per share,” said Rohit Anand, chief financial officer, Tech Mahindra.

Meanwhile, Mohit Joshi, chief executive officer and managing director of Tech Mahindra said, “We continue to progress on our strategic improvement efforts even as the overall IT services industry has remained soft. We have focused on strengthening client relationships and expanding the partner ecosystem while maintaining a sharp focus on operational excellence through project Fortius, which has resulted in an expansion of margins for the third sequential quarter.” 

Tech Mahindra’s market capitalisation is Rs 1,68,931.62 crore, according to BSE. At 10:19 AM, Tech Mahindra shares were trading 2.29 per cent higher at Rs 1,726.70 per share. In comparison, BSE Sensex was trading flat at 81,242.22 levels.