Tech Mahindra Q1 net profit rises nearly 28%; stock closes up 0.62%

Tech Mahindra has reported nearly 28% rise in the consolidated net profit for the first quarter ended on June 30, 2016.

The Information Technology (IT) arm of Mahindra and Mahindra (M&M) group has posted net profit of 27.97% to Rs 79,654 lakh in April-June quarter of the fiscal year 2016-17 (FY17) as against Rs 62,244 lakh in the same period of previous fiscal, it said in a filing to the BSE on Monday.

The company's net income from operations during Q1 FY17 rose up 9.96% to Rs 692,093 lakh as compared to Rs 629,382 lakh in Q1 FY16.

Its total expenses during the period under review were up 9.57% to Rs 609,366 lakh as against Rs 556,121 lakh in the same period of last fiscal.

"Our business has done well on several parameters like large client growth, digital wins and strong cash flows. Automation and delivery excellence are two key focus areas for the year going forward," said Tech Mahindra managing director and chief executive officer C P Gurnani in a statement.

The stock of Tech Mahindra closed up 0.62% or Rs 3.00 at Rs 489.70 on the BSE on Monday