Tech Mahindra Earnings Beat Estimates In December Quarter
Tech Mahindra profit rose 12.8 percent in December ended quarter.
Information technology company Tech Mahindra Ltd.’s profit beat analyst expectations in the December-ended quarter.
Net profit rose 12.8 percent from the previous quarter to Rs 943 crore, the company said in an exchange filing today. That’s higher than the Rs 788 crore consensus forecast of analysts tracked by Bloomberg.
Revenue rose 2.2 percent sequentially to Rs 7,776 crore, also higher than expected. Revenue in dollar terms rose 2.5 percent to $1,209 million on a sequential basis, the company said in the press release accompanying the earnings filing.
“Our focus on digital transformation, continuous reskilling of our workforce to meet the future demands of our market space is showing encouraging results,” Vineet Nayyar, vice-chairman at Tech Mahindra said in the release. “The quarter results also demonstrate our focus on execution, which is key in an otherwise unpredictable macro business environment,” he added.
Earnings before interest and tax rose 17.9 percent to Rs 990 crore quarter-on-quarter while operating margin expanded 110 basis points to 12.7 percent.
The stock has returned 10.1 percent during October-December period, compared to 7.6 percent advance in the country's Benchmark Nifty. Tech Mahindra trades at 17 times trailing 12-month earnings per share and 17 times its estimates for the coming year. Its Bloomberg peers are priced at an average of 22.2 times trailing per-share earnings.