Tech Mahindra scales 52-week high after good Q1 results

Tech Mahindra rose 1.96% to Rs 1,269 at 15:22 IST on BSE after consolidated net profit rose 7.6% to Rs 686 crore on 8.9% growth in revenue to Rs 4103 crore in Q1 June 2013 over Q4 March 2013.

The Q1 result was announced during trading hours today, 12 August 2013.

Meanwhile, the S&P BSE Sensex was up 149.78 points or 0.8% at 18,939.12.

On BSE, 2.91 lakh shares were traded in the counter as against average daily volume of 95,973 shares in the past one quarter.

The stock hit a high of Rs 1,291.80 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 1,240.20 so far during the day. The stock had hit a 52-week low of Rs 753 on 8 August 2012.

The stock had outperformed the market over the past one month till 8 August 2013, surging 19.06% compared with the Sensex's 2.77% fall. The scrip had also outperformed the market in past one quarter, jumping 26.52% as against Sensex's 6.01% fall.

The large-cap company has equity capital of Rs 232.31 crore. Face value per share is Rs 10.

Tech Mahindra's profit after tax before exceptional reversal of impairment provision jumped 36.2% to Rs 686 crore in Q1 June 2013 over Q4 March 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 12.1% to Rs 864 crore in Q1 June 2013 over Q4 March 2013.

The company's debt stood at Rs 747 crore as on 30 June 2013. Cash and cash equivalent stood at Rs 3655 crore as of 30 June 2013.

The company's active client count increased to 567 in Q1 June 2013, from 516 in Q4 March 2013.

Vineet Nayyar, Executive Vice Chairman, Tech Mahindra said: "We have completed one of the largest mergers in Indian corporate space this quarter in a seamless fashion, fulfilling the commitment we made in April 2009. Our robust performance reinforces our belief in the inherent strength and cross leveraging possibilities, for the integrated entity."

Tech Mahindra's board of directors at a meeting held today, 12 August 2013, approved the increase in limit of investment by Foreign Institutional Investors (FII) from the existing 35% to 45% of the paid up capital of the company, subject to approval of the members of the company.

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra. The company serves telecom service providers, equipment manufacturers, software vendors and systems integrators.

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