Shares of Tech Mahindra soared up to 2.48 per cent, hitting its 52-week high at Rs 1,634.25 per share on the BSE in Tuesday’s intraday deals.
At its meeting on August 20, 2024, the Board of Directors of the company approved the sale of approximately 103 acres of land and buildings with a built-up area of around 1,261,149 square feet located in Bahadurpally village in Medchal-Malkajgiri district of Telangana, to Mahindra University.
“This transaction is subject to necessary regulatory approvals. Mahindra University, established under the Telangana State Private Universities (Establishment and Regulation) Act, 2018, will use the property. Mahindra Educational Institutions, a wholly-owned subsidiary of the Company, sponsors Mahindra University,” the company said in an exchange filing on Tuesday.
The cash consideration for the property sale amounts to Rs 535 Crore, which will be received in tranches over four years. Additionally, interest at a rate of 8.20 per cent per annum will be receivable during this period, the information and technology company said.
Tech Mahindra, reported a 23 per cent year-on-year (Y-o-Y) increase in net profit for the first quarter of 2024-25, reaching Rs 851 crore. This strong performance was driven by effective cost management and a reduction in subcontracting costs by nearly 200 basis points, resulting in a notable profit margin. Sequentially, the profit rose by 28.8 per cent. Revenue for Q1 FY25 totaled Rs 13,005 crore, reflecting a 1.2 per cent decline Y-o-Y but a 1 per cent increase sequentially.
At 02:57 PM; the shares of the company were trading 2.20 per cent at Rs 1,629.70 per share on the BSE. By comparison, the BSE Sensex was up by 0.56 per cent to 80,875 levels.
India’s fifth-largest IT services company, Tech Mahindra is a provider of consulting-led integrated portfolio services. It serves a diverse range of clients, including telecom equipment manufacturers, telecom service providers, IT infrastructure service providers, and various enterprise solutions sectors such as BFSI, Retail & Logistics, and Manufacturing, etc.
First Published: Aug 20 2024 | 3:02 PM IST
