Tech Mahindra Shares Gain On Improved Q2 Profit, Cashflow

Shares of Tech Mahindra Ltd. gained after its second-quarter profit and cashflows improved aided by robust deal wins.

The technology company’s consolidated revenue rose 3% sequentially to Rs 13,130 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 13,165.5-crore consensus estimates of analysts tracked by Bloomberg.

Tech Mahindra won deals worth over $716 million in the quarter ended September, compared with $802 million in the previous quarter. The IT company has also declared a special dividend of Rs 18 per share, of face value of Rs 5 apiece.

Tech Mahindra Q2 Results: Key Highlights (QoQ)

• Dollar revenue up 0.3% to $1,638 million

• Net profit up 14% at Rs 1,285.4 crore

• Operating profit up 5% at Rs 1,468 crore

• EBIT margin remained flat at 11%

• Attrition fell to 20% in Q2 on last 12-month basis.

The stock rose as much as 1.78% during early trading on Wednesday. Total traded quantity is 2.6 times the 30-day average.

Of the 47 analysts tracking the company, 31 maintain a ‘buy’, 10 suggest a ‘hold’ and six recommend a ‘sell’, according to Bloomberg data. The 12-month consensus return potential of the stock is 5.4%.

Here’s what analysts made of Tech Mahindra’s quarterly results: