Tech Mahindra: Quotes, News

BSE 1409.1023.8 (-1.69%)

NSE 1408.5024.2 (-1.72%)

The operating profit margin stood at 20.5%. Utilization level fell from 76% in December 2010 quarters to 74% in March 2011 quarter. This was due to net addition of 4,125 employees. As the management of the company acknowledged during the press conference that when new employees join, it takes some time to train them.

According to a report by Angel Broker's the primary growth driver was non-BT revenue, which grew by 9.0% qoq, while BT business declined by 3.5% qoq.

During the quarter revenue increased by 6.6% from Rs 1,183 crore in March Quarter of 2010 to Rs 1,261.5 crore in March quarter of 2011. Revenue growth for the year was at 11.1% from Rs 4,625.4 crore last year.

Declining business from BT of Britain, a top client, also impacted business growth. Excluding BT, the company witnessed revenue growth of 27 per cent for the full year and nine per cent on a sequential basis. BT"s contribution to revenues for the quarter was 41 per cent down from 44 per cent last quarter.

Technical

The company's 200 day moving average has been on a declining trend over the last one year. The same has been the case for 100 day moving averages. The 50 day moving average is witnessing an up-trend since the end of April. Although there is no clear uptrend as of now, it took a down trend since middle of May.

Caution would be a better option under the circumstances, but the stock should be kept under monitor as it has the potential to rise.

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