Tech Mahindra rockets on multi-million dollar deal buzz

Tech Mahindra soared 7.52% to Rs 847.85 on BSE after the company reportedly signed a multi-million dollar deal with Botswana Telecommunications to provide stem integration services across its mobile, internet and fixed-line businesses.

On BSE, 93,728 shares were traded in the counter. The scrip had an average daily volume of one-lakh shares in the past one quarter.

The stock hit a high of Rs 858.80 and a low of Rs 781 so far during the day. The stock shad a 52-week high of Rs 1562.70 on 6 June 2007 and the stock hit a 52-week low of Rs 614.80 on 17 March 2008.

The mid-cap firm had underperformed the market over the past one month till 4 June 2008, declining 16.41% compared to the Sensex's decline of 10.70%. It had outperformed the market in the past one quarter, gaining 17.40% compared to Sensex's decline of 6.21%.

The company's current equity is Rs 121.52 crore. Face value per share is Rs 10.

As per reports, Tech mahindra is eyeing revenue of up to $10 million over the next 3-5 years from this deal, and around $2 million in the first year of the deal. Botswana Telecommunications Corporation (BTC) is wholly-owned by the Botswana government and operates the country's national and international telecommunications services.

Tech Mahindra reported a net loss of Rs 207 crore in Q4 March 2008 as against a net profit of Rs 196.40 crore in Q3 December 2007. Net sales rose 8.68% to Rs 990.7 crore in Q4 March 2008 over Q3 December 2007.

The company provides information technology (IT) services and solutions to the telecom sector. It provides a variety of services ranging from IT strategy and consulting to system integration, design, application development, implementation, maintenance and product engineering.

Popular posts from this blog

IOB capitalises on hike in stake by LIC