Tech Mahindra shares surge as for the first time in over five years the management sees a 10% plus growth
Tech Mahindrawas the top gainer on Nifty 50 with an 8% surge in its shares.
- The company gave a guidance of more than 10% revenue growth for FY22 for the first time in over 5 years in June quarter.
- Revenues grew 4.1% in the quarter in dollar terms to $1.38 billion.
AdvertisementShares of Tech Mahindra surged about 8% as investors cheered the company’s double digit growth guidance in revenue for FY22. Also, the stock hit its one year high at ₹1,223.70 on Friday, July 30.
The information technology (IT) services major reported a 4.1% quarter-on-quarter growth in revenues at $1.38 billion while profit after tax jumped 24.1% quarter-on-quarter to $183.2 million.
The company added 5,209 employees in the April-June quarter taking the total headcount to 126,263.
“The double-digit revenue growth in FY22 (as guided) will be a first for Tech Mahindra, after half a decade – a testimony of its significant underperformance,” said a report by Phillip Capital.
“The company has reported a decent set of numbers, slightly ahead of expectations, which were quite low to begin with. Constant currency growth of 3.9% in the quarter, while ahead of estimates, was significantly lower than peers. Margins came ahead of expectations while dealflow remained strong,” added the report.
“We have witnessed an all rounded performance this quarter with growth across our key markets and industry sectors. We continue to see strong traction in large deal wins as we are helping our customers in integrated digital transformation,” said CP Gurnani, managing director and chief executive officer of Tech Mahindra.
At 10:43 a.m., on Friday, shares of the company were trading at ₹1,231, higher by 9%.
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