Tech Mahindra rallies as Q3 results beat estimates

Tech Mahindra rallies as Q3 results beat estimates

Shares of Tech Mahindra gained nearly 3 per cent in early morning trade on Wednesday after the company reported a sharp rise in its quarterly net profit.

After market hours on Tuesday, February 4, Tech Mahindra announced that its consolidated profit after tax climbed 40.6 per cent to Rs 1010 crore in the October-December quarter of 2013 over the previous quarter; while revenue jumped 2.7 per cent to Rs 4899 crore.

Mahindra & Mahindra-owned Tech Mahindra is a leading provider of solutions & services to the software vendors, telecom service providers, equipment manufacturers and systems integrators.

Operating profit (EBITDA) jumped 2.3 per cent quarter-on-quarter to Rs 1136 crore in third fiscal quarter ended December 31, 2013. But, EBITDA margin slipped from 23.28 per cent to 23.19 per cent.

Commenting on the quarterly figures, Tech Mahindra MD & CEO C P Gurnani said, "Our results are a testimony to the fact that our strategy and investments are aligned with market drivers and demands. Our focus on connected solutions for digital enterprises will continue to drive this momentum."

Tech Mahindra's active client count soared from 576 in the September quarter to 605 in the December quarter. As of December 31, 2013, the company's debt stood at Rs 342 crore, while cash & cash equivalents stood at Rs 3459 crore.

At 9:15 IST, Tech Mahindra shares gained 2.93 per cent to Rs 1821.35 apiece on the Bombay Stock Exchange (BSE). The S&P BSE Sensex was down 0.37 per cent at 20,136.68.

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