Tech Mahindra Shares Volatile: Stock Recovers From Morning Decline
Pune, 26th July 2024: Shares of IT services provider Tech Mahindra experienced significant volatility today, initially trading in the red. The company’s stock saw a sharp decline in early trading, dropping over 5%, but later recovered some of the losses. The decline was attributed to the quarterly results not meeting market expectations. This report examines the company’s financial performance and the reasons behind the stock’s movement.
In the first quarter of the current fiscal year, Tech Mahindra’s shares began trading lower following the release of its quarterly results. Early in the day, the shares plummeted significantly, reflecting investor disappointment. Around 9:20 AM, the company’s shares had dropped more than 5%, but they later stabilized, recovering some of the initial losses.
Performance of Tech Mahindra Shares
On the Bombay Stock Exchange (BSE), Tech Mahindra’s shares were trading down by 5.52% at ₹1,445.50. Similarly, on the National Stock Exchange (NSE), the shares fell by 5.60% to ₹1,444.25 per share. However, by the time of writing, the company’s stock had recovered to ₹1,523.50 per share, a decrease of ₹6.5 or 0.42%.
Reasons for the Decline
The decline in Tech Mahindra’s stock price was largely due to the company’s first-quarter results, which did not meet market expectations. On Thursday, Tech Mahindra released its first-quarter results, detailing its financial performance.
Financial Performance for the First Quarter
Revenue: The company’s revenue for the June quarter fell by 1.2% to ₹13,005 crore.
Net Profit: Tech Mahindra’s net profit for the June 2024 quarter was ₹851 crore, marking a 23% increase from the same period a year earlier.
Tech Mahindra’s new Managing Director and CEO, Mohit Joshi, expressed optimism about the company’s future performance, stating that the fiscal year 2025 is expected to be better compared to the previous year. Despite the initial decline, the recovery of Tech Mahindra’s shares indicates resilient investor confidence in the company’s long-term prospects.
