Tech Mahindra gets 'likes'

Tech Mahindra for Q1FY21 posted a 21% (QoQ) rise in consolidated net profit at Rs.972 crore on the back of a 46% jump in other income at Rs.416 crore. The lower sequential base effect was also at play. This was much better than what majority of analysts had estimated.

Its revenue from operations fell 4% at Rs.9106 crore while dollar revenue fell 7% at $1207 million.

The company also had an impairment of goodwill and non-current assets at Rs 217.5 crore.

EBIT declined almost 3.5% to Rs.917 crore though the margins improved by a small 10bps to 10.1%.

During the quarter, its active client list rose 8% (QoQ) at 981.

Total employee strength was at 1,23,416, down by 1820.

The stock price has reacted positively to these earnings, rising almost 6% to hit an intraday high at Rs.702.40. Its 10% UC for the day stands at Rs.730.45.