Tech Mahindra surges 6% as June quarter earnings beat Street estimates

Going forward, analysts expect a ramp up of large deals won in the previous quarters and improvement in deal wins in coming quarters to drive Tech Mahindra's revenues

Shares of Tech Mahindra gained as much as 6 per cent to Rs 702 on the BSE on Tuesday after the company's April-June quarter (Q1FY21) earnings beat Street estimate.

The IT services firm's revenues declined 6.7 per cent quarter on quarter (QoQ) to US $ 1,207.5 million. However, they were above the estimates by analysts and brokerages who had estimated a decline of 8.3 per cent sequentially. The company reported profit before tax (PBT) of Rs 1,283 crore, up 32.9 per cent sequentially. Its consolidated net profit grew 20.9 per cent on a QoQ basis at Rs 972 crore.