Tech Mahindra slips after Q3 results

Tech Mahindra fell 1.94% to Rs 489.10 at 9:57 IST on BSE after consolidated net profit fell 3.4% to Rs 759 crore on 1.3% increase in revenue to Rs 6701 crore in Q3 December 2015 over Q2 September 2015.

The result was announced after market hours yesterday, 1 February 2016.

Meanwhile, the BSE Sensex was up 48.78 points, or 0.20%, to 24,873.61.

On BSE, so far 76,000 shares were traded in the counter, compared with an average volume of 2.17 lakh shares in the past one quarter. The stock hit a high of Rs 498 and a low of Rs 489 so far during the day. The stock hit a record high of Rs 749.50 on 2 February 2015. The stock hit a 52-week low of Rs 458.70 on 6 July 2015. The stock had underperformed the market over the past one month till 1 February 2016, sliding 4.02% compared with 5.11% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, sliding 7.44% as against Sensex's 6.87% fall.

The large-cap company has an equity capital of Rs 483.61 crore. Face value per share is Rs 5.

The sequential decline in bottom line was due to a sharp fall in non-operational income or the so called other income. The other income dropped 61.43% to Rs 63.94 crore in Q3 December 2015 over Q2 September 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 3.2% to Rs 1136 crore in Q3 December 2015 over Q2 September 2015. The EBITDA margin edged higher to 16.95% in Q3 December 2015 from 16.64% in Q2 September 2015.

In US dollar term, Tech Mahindra's net profit fell 3.7% to $115 million on 0.4% growth in revenue at $1015 million in Q3 December 2015 over Q2 September 2015. EBITDA rose 2.5% at $172 million in Q3 December 2015 over Q2 September 2015. The EBITDA margin stood at 16.9% in Q3 December 2015, an increase of 30 basis points on sequential basis. In constant currency terms, Tech Mahindra's revenue rose 1.2% on sequential basis in Q3 December 2015.

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

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