Tech Mahindra Stock Rebounds Amid Market Surge, Despite Revenue Dip

Shares of IT services firm Tech Mahindra closed slightly higher on Friday, recovering from a significant intra-day slump. The company's revenue dipped by 1.2% in the June quarter. The 30-share BSE Sensex and the NSE Nifty both experienced notable gains. Tech Mahindra reported a 23% rise in net profit.

Shares of IT services firm Tech Mahindra on Friday ended marginally higher, recovering from a sharp intra-day slump, following a smart rally in the broader market.

In the morning session, the stock fell by nearly 6 per cent due to a 1.2 per cent decline in the company's revenues for the June quarter.

The stock later recovered, ending at Rs 1,540.50 per share, up 0.68 per cent on the BSE, after dropping 5.52 per cent to Rs 1,445.50 earlier in the day.

On the NSE, shares finished 0.71 per cent higher at Rs 1,541 after plummeting 5.60 per cent to Rs 1,444.25 apiece during intra-day trading.

The 30-share BSE Sensex jumped 1,292.92 points or 1.62 per cent to settle at 81,332.72, while the NSE Nifty surged 428.75 points or 1.76 per cent to an all-time closing high of 24,834.85.

On Thursday, Tech Mahindra reported a 23 per cent increase in consolidated net profit to Rs 851 crore for the June 2024 quarter, compared to Rs 692.5 crore in the same period last year.

Despite the revenue decline, the company's new managing director and chief executive officer, Mohit Joshi, expressed optimism, stating that FY25 performance will surpass the previous year’s results.