Tech Mahindra gains after good Q1 results

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Tech Mahindra rose 3.34% to Rs 506 at 9:53 IST on BSE after consolidated net profit rose 20.5% to Rs 750 crore on 10% increase in revenue to Rs 6921 crore in Q1 June 2016 over Q1 June 2015.
The result was announced after market hours yesterday, 1 August 2016.

Meanwhile, the S&P BSE Sensex was up 101.06 points, or 0.36%, to 28,104.18.

On BSE, so far 2.29 lakh shares were traded in the counter, compared with an average daily volume of 1.45 lakh shares in the past one quarter. The stock hit a high of Rs 509.85 and a low of Rs 485.25 so far during the day. The stock hit a 52-week high of Rs 581.95 on 28 September 2015. The stock hit a 52-week low of Rs 407.50 on 29 February 2016. The stock had underperformed the market over the past one month till 1 August 2016, falling 4.29% compared with 3.16% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.51% as against Sensex’s 9.36% rise.

The large-cap company has an equity capital of Rs 485.77 crore. Face value per share is Rs 5.

On a consolidated basis, earnings before interest, taxes, depreciation and amortization (EBITDA) rose 13.7% to Rs 1029 crore in Q1 June 2016 over Q1 June 2015.

On a sequential basis, the company’s net profit fell 12.60% to Rs 750 crore on 0.54% increase in revenue to Rs 6921 crore in Q1 June 2016 over Q4 March 2016. EBITDA fell 10.59% to Rs 1029 crore in Q1 June 2016 over Q4 March 2016. The active client count stood at 818 in Q1 June 2016.

Vineet Nayyar, Vice Chairman, Tech Mahindra, said that the company has had a steady quarter inspite of the seasonal weakness in the mobility business. The company looks forward to continuing our journey of improving the profitability of our business.

C P Gurnani, Managing Director & CEO, Tech Mahindra said that the business has done well on several parameters like large client growth, digital wins and strong cash flows. Automation and Delivery Excellence are two key focus areas for the year going forward, he added.

Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering solutions.