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Tech Mahindra gains after good Q2 performance

Capital Market 

Tech Mahindra reported 17.2% increase in consolidated profit after tax to Rs 1124 crore on a 4.8% rise in revenue to Rs 9070 crore in Q2 September 2019 over Q1 September 2018.

Shares of Tech Mahindra rose 0.37% to trade at Rs 776. So far during the day, the stock has traded in the range of Rs 768.10 and Rs 783.50.

The result was announced after market hours yesterday, 5 November 2019. The stock rose 0.49% to end at Rs 773.15 in yesterday's session.

The stock has risen 5.02% in four session to its current market price of Rs 776 from a recent closing low of Rs 738.85 on 31 October 2019.

EBITDA improved by 14.2% to Rs 1501 crore while the EBITDA margins rose by 130bps to 16.5% in Q2 September 2019 over Q1 September 2018.

Revenues from the IT segment rose by 4.67% to Rs 8224.5 crore while the those from the BPO segment increased by 6.23% to Rs 845.4 crore in Q2 September 2019 over Q1 September 2018. The company recorded a revenue growth of 4.1% in constant currency terms.

During the quarter, Tech Mahindra signed a muiti-year agreement with AT&T to expand strategic collaboration accelerating AT&T's IT Network Transformation, shared services modernization and movement to the cloud.

Manoj Bhat, chief financial officer, Tech Mahindra, said, "We have witnessed a broad based growth across geographies and across our customers. We continue to focus on margin improvement while transitioning some of the large deals in a volatile macroeconomic environment."

In a separate announcement, Tech Mahindra announced the acquisition of Born Group, an integrated agency headquartered in the US, to bolster capabilities in commerce and customer experience (CX). Born Group offers end-to-end digital engagement, such as strategy consulting, content creation, digital production, eCommerce and CMS (content management system) implementations and data driven UX (user experiences).

The company's subsidiary, Tech Mahindra (Singapore), will acquire Born Group for a cash consideration of upto $95 million.

Tech Mahindra operates in digital transformation, consulting and business re-engineering solutions and is a part of the Mahindra Group.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 06 2019. 11:55 IST