Tech Mahindra shares surge to 6 1/2 yr high on earnings

PTI Posted online: Friday, Nov 08, 2013 at 0000 hrs
Mumbai : Shares of IT firm Tech Mahindra Ltd today soared by nearly 7 per cent after the company reported a 57.6 per cent jump in consolidated net profit for the September quarter.

Cheering the smart set of results, shares of the IT firm started the trade on a positive note and rose by 6.65 per cent to Rs 1,685.40 - its one-year high on the BSE.

At the NSE, the stock surged 6.67 per cent to its 52-week high of Rs 1,685.90.

"Tech Mahindra reported its Q2 FY14 results which surprised positively on the revenue front and came in line with the expectations on the operating margin as well as on the bottomline front," said Ankita Somani, Research Analyst - IT, Angel Broking.

The company had reported its results after market hours yesterday.

Tech Mahindra had yesterday reported a 57.6 per cent jump in consolidated net profit at Rs 718.4 crore in the three months to September, boosted by higher demand for outsourcing services from across the geographies and verticals.

Consolidated revenue rose 35.4 per cent to Rs 4,771.5 crore in the second quarter, while on a sequential basis, it grew 16.3 per cent to Rs 4,103.2 crore from Q1.

In dollar terms, net profit stood at USD 114 million, up 36.4 per cent year-on-year, while revenue stood at USD 758 million, a growth of 17.6 per cent Y-o-Y.

The fifth largest software exporter's operating profit in the quarter stood at Rs 1,111 crore, a 46.8 per cent jump from Rs 756.9 crore in the year-ago period.


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