Tech Mahindra jumps after reporting good Q4 results

Tech Mahindra jumped 5.59% to Rs 506.05 at 9:25 IST on BSE after consolidated net profit rose 18.15% to Rs 897 crore on 2.72% rise in revenue from services to Rs 6883.70 crore in Q4 March 2016 over Q3 December 2015.

The result was announced after market hours yesterday, 24 May 2016.

Meanwhile, the BSE Sensex was up 307.01 points, or 1.21%, to 25,612.48.

On BSE, so far 78,672 shares were traded in the counter, compared with an average volume of 1.62 lakh shares in the past one quarter. The stock hit a high of Rs 510.75 and a low of Rs 494.50 so far during the day. The stock hit a 52-week high of Rs 668.75 on 25 May 2015. The stock hit a 52-week low of Rs 407.50 on 29 February 2016.

Tech Mahindra's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 2.2% to Rs 1161.30 crore in Q4 March 2016 over Q3 December 2015. The EBITDA margin dropped to 16.87% in Q4 March 2016 from 16.95% in Q3 December 2015.

Meanwhile, the company has dropped its plan to set up a payments bank. The company had received in-principle approval from the Reserve Bank of India in August 2015 for setting up a payments bank.

Tech Mahindra said that the board of directors of the company at its meeting held on 24 May 2016, recommended a dividend of Rs. 12 per share for the year ended 31 March 2016 (FY 2016).

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

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