Zoom is shared by Tech Mahindra as it releases a three-year recovery plan

Tech Mahindra’s stock rose more than 13% on Friday on the release of an ambitious three-year plan by the CEO aimed at boosting profitability and accelerating revenue growth.

On the BSE, the shares surged 13% to Rs 1,344.95. It increased 13.16% to Rs 1,347 at the NSE. The market capitalization of the firm increased to Rs 1,26,705.84 crore, an increase of Rs 10,754.85 crore. It turned out to be the largest gainer on the NSE Nifty and the BSE Sensex.

The communications vertical’s weakness caused the IT services business to post a 41% decline in consolidated net profit for the March quarter to Rs 661 crore on Thursday. Despite this, the company’s CEO unveiled an ambitious three-year plan to increase revenue growth and improve profitability.

Although the company’s top brass admitted that the Q4 figures were a “low point” in the growth trajectory, they were confident that the first quarter would see year-over-year improvement.

According to Tech Mahindra CEO Mohit Joshi, the business intends to resume growth in the second half of FY25. The company’s sales in Q4 FY24 decreased to Rs 12,871 crore, a 6.2% year-over-year decline.

“We think that this year will surpass the last one. Joshi said during the Q4 results call that “organizations will either have to address and adapt or defend and insulate their businesses like never before in a world of heightened geopolitical turmoil coupled with fast-evolving AI capabilities.”