Tech Mahindra jumps 8%, IT firm adds Rs 11,000 crore to market cap after Q2 earnings

Tech Mahindra's shares surged by over 8% on Friday, bolstering its market value by approximately Rs 11,000 crore. The significant gains followed the IT giant's announcement of a 32.74% increase in consolidated net profit for the September quarter. Tech Mahindra, along with other IT stocks, contributed to a positive movement in domestic equity benchmarks, helping them overcome a sluggish start to the day.

The company's market capitalisation climbed to Rs 172,895.16 crore, marking an increase of Rs 10,974.86 crore. The improvement was attributed to strong volume growth, cost savings, and the impact of a weaker rupee. Revenue from operations grew by 15.6% to Rs 16,180.2 crore, while net profit increased by 8% compared to the previous quarter.

Tech Mahindra also recommended a 1:1 bonus issue to celebrate its 40th anniversary, which is expected to be issued by December 15. IT stocks, including Tech Mahindra, Infosys, TCS, and HCLTech, witnessed gains, while other sectors remained largely unchanged. Despite the rally, concerns over high crude oil prices and rising US producer costs kept global investors cautious.