Tech Mahindra shares rallied as much as 14.35 per cent on Wednesday after the IT services firm on Tuesday said its consolidated net profit has almost doubled to Rs 897.08 crore for the quarter ended March 31, 2016. The Mumbai-based company had posted a net profit of Rs 472 crore in the corresponding quarter last fiscal. Net profit of Tech Mahindra surged 18.15 per cent on quarter-on-quarter basis.
The company’s revenue grew 12.5 per cent to Rs 6,883.73 crore in the reported quarter from Rs 6,116.79 crore in the January-March quarter of 2015.
Tech Mahindra, which had received in-principle approval from Reserve Bank of India for setting up a Payment Bank, said it “will not pursue this opportunity”.
Cash and cash equivalents stood at Rs 5,189 crore as of March 31, 2016, up by Rs 1,977 crore y-o-y.
According to Angel Broking, the net profit of Tech Mahindra jumped 18 per cent qoq on account of rise in other income. The brokerage house maintained ‘Accumulate’ rating on the stock with target price of Rs 530.
Other income of the company jumped 125 per cent on qoq basis at Rs 165.91 crore.
Later, the scrip closed 10.29 per cent up at Rs 528.55.