Tech Mahindra jumps after Q2 results

Tech Mahindra rose 6.24% to Rs 440.70 at 9:21 IST on BSE after consolidated net profit declined 19.22% to Rs 643.40 crore on 3.56% growth in income from operations to Rs 7167.41 crore in Q2 September 2016 over Q1 June 2016.

The result was announced after market hours yesterday, 27 October 2016.

Meanwhile, the BSE Sensex was down 69.89 points, or 0.25%, to 27,846.01.

On BSE, so far 1.26 lakh shares were traded in the counter, compared with average daily volume of 2.93 lakh shares in the past one quarter. The stock hit a high of Rs 443 and a low of Rs 427 so far during the day. The stock hit a 52-week high of Rs 569 on 4 November 2015. The stock hit a 52-week low of Rs 405.10 on 17 October 2016. The stock had underperformed the market over the past 30 days till 27 October 2016, falling 5.83% compared with 1.33% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 14.77% as against Sensex's 0.48% decline.

The large-cap company has equity capital of Rs 486.02 crore. Face value per share is Rs 5.

In dollar terms, the company's consolidated net profit declined 13.4% to $96.5 million on 6.1% growth in revenue to $1.072 billion in Q2 September 2016 over Q1 June 2016. Revenue in constant currency terms rose 5% in Q2 September 2016 over Q1 June 2016.

Vineet Nayyar, Vice Chairman, Tech Mahindra said that the company's performance during the quarter indicates that its early investments in new technologies and capabilities are starting to show result.

C P Gurnani, Managing Director & CEO, Tech Mahindra said that overall, it was a very good quarter with the growth well-supported by its key communications and enterprises businesses. The company had some marquee wins which align very well with its strategy of catering to the connected world, he said.

Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering solutions.

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