BackShares of IT firms surge after Tech Mahindra posts strong results
Tech Mahindra stock rose as much as 4.8% in intra-day trade
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Mumbai: Shares of information technology (IT) companies rose on Thursday, with Tech Mahindra Ltd stock rising as much as 4.8%, before closing 3.49% up at ₹ 2,480.15, a day after reporting better-than-expected results.
Among other IT companies, HCL Technologies Ltd rose 4.30% to ₹ 1,577.20, Mindtree Ltd rose 2.74% to ₹ 1,092.90, Infosys Ltd rose 1.72% to ₹ 3,946.15, Tata Consultancy Services Ltd (TCS) rose 2.21% to ₹ 2,557.90, while Wipro Ltd rose 0.50% to ₹ 559.55. The BSE IT Index rose 2.04% to 10,496.13 points.
However, Mphasis Ltd fell 1.31% to ₹ 408.10 after the company reported weaker-than-expected profit. Net Profit was at ₹ 160.29 crore as against ₹ 175 crore estimated by Bloomberg.
On Wednesday, Tech Mahindra said its revenue rose 15% to ₹ 5,488 crore for the September quarter from ₹ 4,771 crore a year earlier, but net profit was almost flat at ₹ 720 crore compared with from ₹ 718.4 crore in the year-ago period.
The company attributed the flat net profit to cross-currency headwinds and increased onsite business. Revenue in dollar terms grew 5.2% sequentially, far ahead of Street expectations of about 3.8% growth.
A Bloomberg survey of 40 analysts had estimated net profit at ₹ 726.8 crore, while 42 analysts estimated revenue at ₹ 5,377.6 crore for the September quarter.
The benchmark Sensex closed 0.92% up at 27,346.33 points.
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