Athira Sethu
Kochi, 21 October 2024
The shares of Tech Mahindra are on a roll after its second quarter results beat market estimates. The company’s share surged to a fresh 52-week high at Rs 1,761.30 per share after brokerage firms raised the price target.
The Pune-based firm Tech Mahindra has registered a profit of Rs 1,250.1 crore in the September quarter, a growth of 46.8% from Rs 851.5 crore recorded in the previous quarter.
The top line of the company’ had gone up by 2.4% to Rs 13,313.2 crore in the September quarter from Rs 13,005.5 crore a quarter ago. Earnings before interest and taxes, or EBIT, at the operating level improved by 16.2% to Rs 1,280.4 crore from Rs 1,102.3 crore a quarter ago, thus sending the EBIT margin up to 9.6% versus 8.5%.
Tech Mahindra, meanwhile, clocked 1.9% year-on-year growth in the dollar revenue, at $1.59 million against last quarter’s $1.56 million. The company also bagged new deals that totalled $603 million this quarter.
Chief Financial Officer Rohit Anand said, “The company is very focused on picking up deals, growing revenues and optimizing costs while reaping steady free cash flow. All of these are in line with what the company has targeted for fiscal 2027.”
Chief Executive Officer Mohit Joshi said the overall challenges in the IT services market still do not seem to have rubbed off on Tech Mahindra as it continues improving its strategies. The firm continues to focus on client relationships and expansion of partnerships, besides achieving operational excellence, which has led to improved margins for the third successive quarter.
