Tech Mahindra gains after winning new order

Tech Mahindra rose 1.17% to Rs 2,500 at 13:06 IST on BSE after the company announced that it has been selected by Ahlstrom to manage its IT operations.

The announcement was made during trading hours today, 23 September 2014.

Meanwhile, the BSE Sensex was down 115.23 points, or 0.42%, to 27,091.51.

On BSE, so far 25,000 shares were traded in the counter, compared with an average volume of 52,290 shares in the past one quarter.

The stock hit a high of Rs 2,512.30 and a low of Rs 2,475 so far during the day. The stock hit a 52-week high of Rs 2,521.80 on 5 September 2014. The stock hit a 52-week low of Rs 1,300 on 23 September 2013.

The stock had outperformed the market over the past one month till 22 September 2014, rising 7.15% compared with 2.98% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 23.06% as against Sensex's 8.37% rise.

The large-cap company has an equity capital of Rs 235.39 crore. Face value per share is Rs 10.

With the multi-year, multi-million Euro agreement Ahlstrom aims to increase efficiency, harmonize service levels and lower IT costs, Tech Mahindra said in a statement.

Tech Mahindra and Ahlstrom have signed a letter of agreement at a ceremony in Helsinki, Finland regarding the services to be operated by Tech Mahindra. As a consequence, approximately 50 Ahlstrom IT employees globally are planned to move to Tech Mahindra under a business transfer agreement. The planned transfer is expected to take place on 1 December 2014, subject to country specific conditions, the company said.

Ahlstrom is a high performance fiber-based materials company. Its materials are used in everyday applications such as filters, medical fabrics, life science and diagnostics, wallcoverings and food packaging.

On a consolidated basis, Tech Mahindra's net profit rose 2.68% to Rs 630.72 crore on 4.81% growth in total income to Rs 5210.77 crore in Q1 June 2014 over Q4 March 2014.

Tech Mahindra is a global company specializing in digital transformation, consulting and business re-engineering solutions. It's part of the India-based Mahindra Group.

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