Tech Mahindra shares surged higher on Tuesday, despite the company’s consolidate net profit seeing a sequential fall in the first quarter of this financial year. Despite the drop in earnings, several leading brokerages and analysts continue to recommend the stock, either advising investors to ‘hold’ it are even ‘buy’ at current levels.

The stock rallied to Rs 684.20 on BSE and is currently up 4% at Rs 680.60, On the National Stock Exchange, the stock is up 4% at Rs 681.60, after touching a high of Rs 684.90. The stock, which was hovering around Rs 380 in end July last year, rose to a high of Rs 729.50 by end April 2018.

On BSE, the Tech Mahindra counter has clocked a volume of 4.53 lakh shares so far in the session, about 2.5 times the average daily volume of 1.86 lakh shares. On the National Stock Exchange, the counter has clocked a volume of nearly 8.2 million shares so far in the session.

Year-on-Year, Tech Mahindra’s revenue rose 13% to Rs 8276 crore in the April – June quarter, and sequentially, it was up 2.8%.

EBITDA increased 45% to Rs 1357 crore. EBITDA margin was up 370 basis points (Y-0-Y) at 16.4%, though it was down 3.9% sequentially. Profit after tax at Rs 898 crore in the June quarter was up 12% year-on-year, but dropped 26.5% sequentially. Tech Mahindra’s EPS for the June quarter was Rs 10.12.

In dollar terms, revenue rose 0.3% (in constant currency terms), Quarter-on-Quarter. Revenue rose 7.5% compared to year-ago quarter, to $1224.1 million. Sequentially, it was down 1.6%.

The tech major added 13 active clients in the first quarter, taking the total client count to 926.

After announcing the results, C P Gurnani, the Managing Director & Chief Executive Officer of Tech Mahindra said. “The overall business growth trajectory for the FY 19 is on track. While business seasonality has affected the current quarter, our Run Change Grow Strategy with strong focus on digital transformation is keeping the business buoyant. The changing demand landscape for next generation technologies is going to fuel the digital business further.”