Tech Mahindra surges on strong Q4 earnings

Tech Mahindra has surged over 4% to Rs 639 on reporting more than three-fold jump in its consolidated net profit at Rs 303 crore for the quarter ended March 31, 2012, over the previous year quarter. Revenues grew 12.5% at Rs 1,419 crore on year-on-year (y-o-y) basis.

Operating margins however, declined almost 400 basis points (bps) at 16.86% on y-o-y basis, while its improved by 60 bps on quarter-on-quarter basis. The board has recommended a dividend of Rs 4 per share on face value of Rs 10 each.

The stock opened at Rs 631 and hit a high of Rs 640 on the Bombay Stock Exchange. A combined 48,000 shares have changed hands on the counter in opening deals on both the exchanges.