Tech Mahindra gains after announcing strong Q1 results

Tech Mahindra rose 0.9% to Rs 523.65 at 9:30 IST on BSE after consolidated net profit rose 43.2% to Rs 676 crore on 2.9% growth in revenue to Rs 6294 crore in Q1 June 2015 over Q4 March 2015.

The result was announced after market hours yesterday, 27 July 2015.

Meanwhile, the S&P BSE Sensex was up 45.27 points or 0.18% at 27,611.22.

Shares of IT services provider hit a high of Rs 527.40 and a low of Rs 518 so far during the day. The stock had hit record high of Rs 749.50 on 2 February 2015. The stock had hit 52-week low of Rs 458.70 on 6 July 2015.

On BSE, so far 1.04 lakh shares were traded in the counter as against average daily volume of 3.81 lakh shares in the past one quarter.

Tech Mahindra's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 0.8% to Rs 936 crore in Q1 June 2015 over Q4 March 2015.

Tech Mahindra said Q4 March 2015 results include the results of Lightbridge Communications Corporation (LCC), USA and SOFGEN Holdings (SOFGEN) which were acquired as 100% subsidiary effective from 2 January 2015 and 14 March 2015 respectively.

In dollar terms, Tech Mahindra's consolidated net profit rose 40.5% to $106 million on 0.5% growth in revenue to $989 million in Q1 June 2015 over Q4 March 2015.

The company's cash and cash equivalents as of 30 June 2015 stood at Rs 3350 crore.

Commenting on the company's Q1 performance, Vineet Nayyar, Executive Vice Chairman of Tech Mahindra said that the company's results are in line with expectations and the management remains hopeful of improving the company's performance by expanding its business in the coming quarters.

C P Gurnani, Managing Director & CEO of Tech Mahindra said that the company's strategic investments and initiatives across Digital are resonating well with the businesses it serves.

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