Tech Mahindra rallies as Q4 profit beat estimates

Tech Mahindra has rallied 14% to Rs 548 on the BSE in early morning trade, after the company reported a better-than-expected 18% quarter-on-quarter growth in consolidated net profit at Rs 897 crore for the quarter ended March, 2016 (Q4FY16).

IT consulting & software company had profit of Rs 759 crore in December 2015 quarter and Rs 472 crore in March 2015 quarter.

Income from operations grew 2.7% at Rs 6,884 crore on sequential basis.

Analysts, on an average, had expected profit of Rs 741 crore on revenues of Rs 6,827 crore for the quarter.

The board has proposed a dividend of Rs 6 per share and an additional special dividend of Rs 6 per share for FY16 to commemorate the 10th year of the company's listing on the stock exchanges. The total dividend for FY16 is Rs 12 per share.

At 09:57 am, the stock was up 10% at Rs 528 on the BSE. The trading volumes on the counter jumped over six-fold with a combined 4.41 million shares changing hands on the NSE and BSE.

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