Tech Mahindra rose 2.93% to Rs 1821.35 at 9:15 IST on BSE after consolidated profit after tax jumped 40.6% to Rs 1010 crore on 2.7% increase in revenue to Rs 4899 crore in Q3 December 2013 over Q2 September 2013.
The Q3 result hit the market after market hours on Tuesday, 4 February 2014.
Meanwhile, the S&P BSE Sensex was down 75.25 points or 0.37% at 20,136.68.
On BSE, so far 24,000 shares were traded in the counter as against average daily volume of 52,000 shares in the past two weeks.
The stock hit a high of Rs 1,845 and a low of Rs 1,821.35 so far during the day.
The sharp rise in net profit on sequential basis in Q3 December 2013 was due to write back of excess provision for contingencies of Rs 120 crore provided in earlier years in Q3 December 2013. This is non-recurring item. Another reason for the sharp surge in net profit on sequential basis in Q3 December 2013 was a reversal of tax provision of Rs 226.60 crore no longer required.
Operating profit (EBITDA) rose 2.3% to Rs 1136 crore in Q3 December 2013 over Q2 September 2013. EBITDA margin declined to 23.19% in Q3 December 2013, from 23.28% in Q2 September 2013.
Commenting on the financial performance, Vineet Nayyar, Executive Vice Chairman, Tech Mahindra, said, "We are pleased to report another successful quarter where growth has come from our main verticals -- Telecom, Manufacturing and BFSI. We remain confident of the success of our differentiated offerings".
C P Gurnani, Managing Director & CEO, Tech Mahindra said, "Our results are a testimony to the fact that our strategy and investments are aligned with market drivers and demands. Our focus on connected solutions for digital enterprises will continue to drive this momentum".
Tech Mahindra's debt stood at Rs 342 crore as of 31 December 2013. Cash and cash equivalents stood at Rs 3459 crore as of 31 December 2013.
The company's active client count increased to 605 in Q3 December 2013, from 576 in Q2 September 2013.
Tech Mahindra's board of directors at its meeting held on Tuesday, 4 February 2014, approved increase in limit of investment by FIIs from the existing 45% to 48% of the paid up capital of the company.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra. The company serves telecom service providers, equipment manufacturers, software vendors and systems integrators.
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