Query: I am holding 37 shares of Techmahindra, at the IPO price and have seen it reaching the levels of Rs.2000, please advise what should I do with these shares? I can hold this on long term basis too. AshwaniThebullishtrends: Tech Mahindra shares are trading at Rs.838. The share price touched the 52 weeks new low level of Rs.731 yesterday. Tech Mahindra is a global systems integrator and business transformation consulting firm focused on the communications industry.
Tech Mahindra is the Leading provider of IT Solutions to the Telecom industry For over two decades, Tech Mahindra has been the chosen transformation partner for wireline, wireless and broadband operators in Europe, Asia-Pacific and North America. Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India, in partnership with British Telecom plc (BT), world’s leading communications service provider, Tech Mahindra has grown rapidly to become the 6th largest software exporter in India (NASSCOM 2007) and the second largest telecom software provider from India (Voice & Data 2007). Over 23,000 professionals service clients across the telecom eco-system, from our global network of development centres and sales offices across Americas, Europe, Middle-east, Africa and Asia-Pacific.
TECH MAHINDRA's Q2 revenues up by 29% company Net profit after tax of Rs 181.6 crores and revenue of Rs 897.5 crores Netprofit after tax before extraordinary items grew by 28% and revenue grew by 29%, over the corresponding quarter of the previous year. Tech Mahindra Limited, one of the largest solution providers in the telecom space, announced a 28% growth in net profit after tax before extraordinary items and 29% increase in revenue for Q2 FY08 over the corresponding quarter in the previous year. Tech Mahindra reported consolidated net profit after tax, before extraordinaryitems, of Rs 181.6 crores for Q2 FY 08 as against Rs 141.6 crores in Q2 FY 07. The company's revenue is was Rs 897.5 crores for Q2 FY08 as against Rs 697.5 crores in Q2 FY07.In the previous financial year in Q2 FY07 there was a one time tax refund of Rs 33.9 crores. Consolidated net profit after tax after extraordinary items is Rs 181.6 crores for Q2 FY 08 as against Rs 175.6 crores in Q2 FY07.
Tech Mahindra is the Leading provider of IT Solutions to the Telecom industry For over two decades, Tech Mahindra has been the chosen transformation partner for wireline, wireless and broadband operators in Europe, Asia-Pacific and North America. Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India, in partnership with British Telecom plc (BT), world’s leading communications service provider, Tech Mahindra has grown rapidly to become the 6th largest software exporter in India (NASSCOM 2007) and the second largest telecom software provider from India (Voice & Data 2007). Over 23,000 professionals service clients across the telecom eco-system, from our global network of development centres and sales offices across Americas, Europe, Middle-east, Africa and Asia-Pacific.
TECH MAHINDRA's Q2 revenues up by 29% company Net profit after tax of Rs 181.6 crores and revenue of Rs 897.5 crores Netprofit after tax before extraordinary items grew by 28% and revenue grew by 29%, over the corresponding quarter of the previous year. Tech Mahindra Limited, one of the largest solution providers in the telecom space, announced a 28% growth in net profit after tax before extraordinary items and 29% increase in revenue for Q2 FY08 over the corresponding quarter in the previous year. Tech Mahindra reported consolidated net profit after tax, before extraordinaryitems, of Rs 181.6 crores for Q2 FY 08 as against Rs 141.6 crores in Q2 FY 07. The company's revenue is was Rs 897.5 crores for Q2 FY08 as against Rs 697.5 crores in Q2 FY07.In the previous financial year in Q2 FY07 there was a one time tax refund of Rs 33.9 crores. Consolidated net profit after tax after extraordinary items is Rs 181.6 crores for Q2 FY 08 as against Rs 175.6 crores in Q2 FY07.
The number of clients increased from 87 in Q1 FY 08 to 96 in Q2 FY 08. The number of clients generating revenue of more than USD 5 m annually went up from 9 in Q1 FY 08 to 12 in Q2 FY 08. The company derived 19%, 75% and 6% of its revenues in the current quarter from theUS , Europe and ROW regions respectively. Revenues grew 39% and 32% in the US and Europe regions respectively.
Tech Mahindra has also won a deal with a leading US provider for voice, video and data services to provide data analysis services to accelerate work order processing backlog and turn around. This will enable the client to accelerate major network infrastructure improvements and reduce work order processing costs significantly.
But the only thing is the company major revenues are coming from US only, if the company could not get the contracts due to recession fears it will impact on Techmahindra's performance in the coming months. The stock has lost 54% of it's share price performance over a year of time. Technically the share price is in down trend, you may not see Rs.2000/- level immediately, But we advise you keep watch on Q3 results and take decission once the company has announced its results.
Tech Mahindra has also won a deal with a leading US provider for voice, video and data services to provide data analysis services to accelerate work order processing backlog and turn around. This will enable the client to accelerate major network infrastructure improvements and reduce work order processing costs significantly.
But the only thing is the company major revenues are coming from US only, if the company could not get the contracts due to recession fears it will impact on Techmahindra's performance in the coming months. The stock has lost 54% of it's share price performance over a year of time. Technically the share price is in down trend, you may not see Rs.2000/- level immediately, But we advise you keep watch on Q3 results and take decission once the company has announced its results.
