Tech Mahindra hits 61/2 year high

Tech Mahindra has hit a new 52-week high, a 61/2 year high, at Rs.1683.10, with volumes spiking up almost 2.5 times. The stock has come off the high since then but it remains strongly in the green and around the high levels of Rs.1680.

The stock has zoomed up after it posted a set of very good numbers for Q2FY14. Its consolidated net profit QoQ, rose 5% at Rs. 718 crore on a 16% jump in revenue at Rs.4771 crore. EBIDTA was at Rs.1111 crore, up 28% and EBITDA margins came in very healthy at 23.3% v/s 21.05%. The company also had a forex loss for the quarter at Rs.26 crore v/s a gain of Rs.134 crore in previous Q1.

The company’s dollar revenue was at US$758 million compared to US$ 724 million in Q1. It attrition rate rose marginally from 15% to 16% and IT utilization rate was also down from 76% to 75%.