Tech Mahindra Shares Surge 7% on 3-Year Growth Plan

New Delhi, Apr 26 (PTI) Shares of Tech Mahindra on Friday surged over 7 per cent after the company outlined an ambitious three-year roadmap to accelerate revenue growth and lift margins.

The stock advanced 7.34 per cent to finish at Rs 1,277.45 on the BSE. During the day, it jumped 13 per cent to Rs 1,344.95.

At the NSE, the stock zoomed 7.54 per cent to Rs 1,280.15. During the session, it climbed 13.16 per cent to Rs 1,347.

The company's market capitalisation increased by Rs 8,537.51 crore to Rs 1,24,781.54 crore.

It emerged as the biggest gainer on the BSE Sensex and NSE Nifty.

In traded volume terms, 8.53 lakh shares of the company were traded at the BSE and over 204.32 lakh shares at the NSE.

The IT services company on Thursday reported a 41 per cent fall in consolidated net profit for the March quarter to Rs 661 crore amid weakness in the communications vertical, even as its CEO outlined an ambitious three-year roadmap to boost revenue growth and lift margins.

The top brass acknowledged that the Q4 results marked a "low point" in the company's growth trajectory but exuded confidence that year-on-year improvement will become visible starting the first quarter.

Tech Mahindra CEO Mohit Joshi said the company hopes to come back to growth in H2 FY25.

In Q4 FY24, the company's revenue dropped by 6.2 per cent year-on-year to Rs 12,871 crore.

"We believe this year will be better than the previous one. In a world of heightened geopolitical turmoil, coupled with fast-evolving AI capabilities, organisations will either have to address and adapt or defend and insulate their businesses like never before," Joshi said during the Q4 earnings conference.