Tech Mahindra shares surge over 4 pc after Q2 earnings

Written by PTI | Mumbai | Updated: Oct 30 2014, 18:34pm hrs
Tech MahindraTech Mahindra revenue rose 15 per cent to Rs 5,488 crore in Sept quarter. (Reuters)
Shares of Tech Mahindra today surged 4.79 per cent in morning trade on BSE after the company reported an increase in revenue and net profit during the September quarter.

The company yesterday reported a healthy rise in revenue and marginal growth in September quarter, with net profit at Rs 719.7 crore.

Reacting to the numbers, the shares of the company opened on a bullish note and then surged as much as 4.79 per cent to an early high of Rs 2,511.50 on the BSE.

Similar movement was seen on the National Stock Exchange where the stock opened at Rs 2,460 and then jumped 4.79 per cent to a high of Rs 2,512.

The revenue rose 15 per cent to Rs 5,488 crore over the same period last fiscal while on a sequential basis it rose 7.2 per cent. The profit was up 14.1 per cent on a sequential basis.

Its pre-tax margins also improved to 19.9 per cent during the quarter as against the preceding June quarter's 18.1 per cent.

Executive Vice Chairman Vineet Nayyar said the company is in the investment phase which impacts the margins. But once the work is on stream, the returns are higher, he said.