Tech Mahindra gains on robust Q3 earnings

The company reported a record profit of Rs 1,010 crore during the December quarter

The country’s fifth largest IT exporter reported profit at Rs 1,010 crore during the quarter, a jump of over three times from Rs 321.5 crore during the same quarter a year ago. This was higher than the Street expectation of Rs 662 crore.

The profit was up 41 per cent on a sequential basis ahead of estimates, aided by exceptional gains, such as tax writeback, forex gains and writeback of past provisions. Excluding these, the company would have barely managed to meet the Street’s consensus estimates.

After its merger with Mahindra Satyam, Tech Mahindra has been one of the top performing information technology (IT) stocks on the bourses. In 12-months, the stock has moved up nearly 80 per cent, behind HCL Technologies but ahead of TCS, Infosys and Wipro.

Investors have been betting on faster growth from the company, given the scale and geographical footprint it acquired from Mahindra Satyam. The company has not disappointed investors so far and the third quarter was not an exception.