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Tech Mahindra zooms nearly 6% post unexpected Q1 earnings

The stock gained 5.77 per cent to Rs 702.40 on the BSE, but at 2.02 pm the share prices came close to per cent to Rs 681.45.

SNS | New Delhi |

Tech Mahindra, up by nearly 6 per cent, was among the top gainers on the Sensex charts on Tuesday after the company reported a 1.35 per cent rise in June quarter net profit and said it is targeting to emerge stronger by the end of the calendar year 2020.

The stock gained 5.77 per cent to Rs 702.40 on the BSE, but at 2.02 pm the share prices came close to per cent to Rs 681.45.

At the NSE, it was at Rs 683.05, up by 2.78 per cent. Earlier in the day, it had jumped 5.74 per cent to Rs 702.75.

On Monday, Tech Mahindra on Monday reported a 1.35 per cent jump in June quarter net profit at Rs 972.3 crore amid the COVID-19 pandemic.

As compared to the preceding March quarter, the net profit of the country’s fifth biggest software exporter grew over 20 per cent, but the management was quick to point that there were impairments on the back of provisions made for COVID-19.

Revenues rose to Rs 9,106 crore, up 5.23 per cent when compared with the year-ago period, but it was down 4 per cent sequentially.

Its chief executive C P Gurnani told reporters that the figures are much better than what the Mahindra Group company had initially budgeted for and without giving any numbers, affirmed its commitment to become “leaner and stronger” by the end of the year.

Analysts at brokerage Sharekhan said the numbers are better-than-expected on all fronts.