Tech Mahindra shares jump nearly 4 pc on better-than-expected Q1 earnings

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Shares of Tech Mahindra jumped nearly 4 per cent 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 2020.

The stock, which gained 5.77 per cent to Rs 702.40 on the BSE during the day, later closed at Rs 683.50, up 2.93 per cent.

On the NSE, it closed 3.66 per cent up at Rs 688.85.

In terms of volume, 8.20 lakh shares were traded at the BSE and over 2 crore units on the NSE during the day.

Tech Mahindra on Monday reported 1.35 per cent increase in June quarter net profit to Rs 972.3 crore amid 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.