Tech Mahindra Stock Surges as CEO Unveils 3 Year Plan

Tech Mahindra, a main IT service sector player, witnessed a significant surge in its stock price, with shares hitting the 10 percent upper limit at ₹1,309.30 on April 26. 

The rally followed the unveiling of a comprehensive three-year roadmap by the company’s CEO and MD, Mohit Joshi, to revitalize Tech Mahindra’s performance and position it for sustained growth.

Three-Year Turnaround Plan by Tech Mahindra: 

Mohit Joshi outlined a strategic plan to enhance revenue growth and optimize margin improvement by FY27. 

The roadmap aims to surpass peer average revenue growth rates while concurrently driving margin optimization initiatives to bolster profitability over the next three years.

Market Performance: 

Tech Mahindra shares have witnessed a notable uptrend in April, with gains exceeding 7 percent thus far. 

The positive sentiment surrounding the company’s strategic direction, as articulated by its CEO, has contributed to investor optimism and propelled the stock to new highs.

Q4 FY24 Financial Results by Tech Mahindra: 

Despite the recent surge in stock price, Tech Mahindra’s Q4 FY24 financial results revealed mixed performance metrics. 

The company reported a consolidated net profit decline of nearly 41%, amounting to ₹661 crore. Furthermore, revenue for the quarter declined by 6.2% year-on-year to ₹12,871 crore. 

For the full fiscal year FY24, consolidated net profit witnessed a sharp decline of 51.2% year-on-year, totaling ₹2,358 crore.

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