Tech Mahindra shares surge over 7% after Q2 earnings

Shares of software exporter Tech Mahindra surged over 7% on Friday even after the company reported a 16.93% dip in September quarter net income.

The stock, after a positive opening, gained 6.94% to Rs 443.60 on BSE.

At the NSE, shares of the company surged 7.22% to Rs 444. The country's fifth largest software exporter Tech Mahindra's revenue rose 8.34% to Rs 7,167.4 crore but margins compressed to 14.9% from 16.4%.

The company reported a 16.93% dip in September quarter net income at Rs 644.7 crore from Rs 776.1 crore a year ago owing to restructuring exercise in Europe which hurt its margins.

Chief Financial Officer Milind Kulkarni said the quarter saw a $13 million hit due to a one-time restructuring exercise in Belgium, where it transferred a part of its operations to India, resulting in margin impact.

During the reporting quarter, revenue from European operations grew the fastest at 9.4% over the preceding June quarter, followed by the US at 2.5%.