Tech Mahindra has surged over 5% to Rs 756, in otherwise weak market, after its subsidiary Mahindra Satyam reported a better-than-expected 56% year-on-year (yoy) growth in net profit at Rs 352 crore for the quarter ended June 2012.
Mahindra Satyam (Satyam Computer Services Ltd), is in the process of a merger with parent Tech Mahindra Ltd. Tech Mahindra, which owns 42.64% of Satyam, is offering one share in itself for every 8.5 shares of Satyam to absorb the company.
Meanwhile, the board of directors of Techn Mahindra will meet on August 09, to consider the audited financial results of the company for the first quarter ended June 30, 2012.
Analysts on an average expects a net profit of Rs 256 crore on revenues of Rs 1,535 crore for the quarter ended June 30.
“Tech Mahindra expected to report a 0.6% quarter-on-quarter (qoq) growth in US$ revenues. Margins expected to improve by around 200 bps QoQ to 18.8% led by currency depreciation,” analyst at Emkay Global Financial Services said in recent report.
The stock opened at Rs 730 and hit a high of Rs 757 on the NSE. As many as a combined 339,635 shares have already changed hands on the counter till early noon deals, against an average around 100,000 shares that were traded daily in past two weeks.
