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  Business   Tech Mahindra shares surge over 7 per cent after Q2 earnings

Tech Mahindra shares surge over 7 per cent after Q2 earnings

PTI
Published : Oct 28, 2016, 11:04 am IST
Updated : Oct 28, 2016, 11:04 am IST

Tech Mahindra's revenue rose 8.34 per cent to Rs 7,167.4 crore but margins compressed to 14.9 per cent from 16.4 per cent.

TECH-MAHINDRA_0.jpg
 TECH-MAHINDRA_0.jpg

Tech Mahindra's revenue rose 8.34 per cent to Rs 7,167.4 crore but margins compressed to 14.9 per cent from 16.4 per cent.

New Delhi:

Shares of software exporter Tech Mahindra on October 28 surged over 7 per cent even after the company reported a 16.93 per cent dip in September quarter net income.

The stock, after a positive opening, gained 6.94 per cent to Rs 443.60 on BSE. At NSE, shares of the company surged 7.22 per cent to Rs 444.

Country's fifth largest software exporter Tech Mahindra's revenue rose 8.34 per cent to Rs 7,167.4 crore but margins compressed to 14.9 per cent from 16.4 per cent.

The company on October 27 reported a 16.93 per cent dip in September quarter net income at Rs 644.7 crore from Rs 776.1 crore a year ago owing to restructuring exercise in Europe which hurt its margins.

Chief Financial Officer Milind Kulkarni said the quarter saw a USD 13 million hit due to a one-time restructuring exercise in Belgium, where it transfered a part of its operations to India, resulting in margin impact.

During the reporting quarter, revenue from European operations grew the fastest at 9.4 per cent over the preceding June quarter, followed by the US at 2.5 per cent.