Don’t miss the latest developments in business and finance.

Tech Mahindra at six year high on strong Q1 earnings

Q1 consolidated profit at Rs 686 crore against an average analysts estimate of Rs 561 crore.

Image
SI Reporter Mumbai
Last Updated : Aug 13 2013 | 10:34 AM IST
Tech Mahindra is trading higher by 4.3% to Rs 1,320 after reporting 36% quarter-on-quarter (qoq) jump in its consolidated adjusted net profit at Rs 686 crore for the quarter ended June 30, 2013 (Q1) on back of higher non-operating income from forex gains. The company’s revenues for the quarter grew by 6.8% at Rs 4,103 crore on qoq basis.

Analyst on average had expected profit of Rs 561 crore and revenues of Rs 3,696 crore for the quarter.

EBITDA margin improved by around 110 bps at 21.1%, aided by 130bp qoq of favorable currency impact, partially offset by 80bp of negative impact from higher expenses (especially visa related). Management indicated that the company should be able to sustain current margin levels after absorbing the impact of wage hikes,says analyst at Angel Broking in a note.

Meanwhile, Tech Mahindra proposed to increase the FII limit from current 35% to 45% of paid-in capital, which may make it eligible for inclusion in MSCI Global Standard Index, following Satyam’s removal in July.

The stock opened at Rs 1,281 and hit a high of Rs 1,329, its highest level since October 2007, on BSE. A combined 802,404 shares changed hands on the counter so far on BSE and NSE.
 

Also Read

First Published: Aug 13 2013 | 10:31 AM IST

Next Story