Tech Mahindra rallies over 1%, hits 52-week high on growth outlook

NEW DELHI: Tech Mahindra Ltd rallied as much as 1.7 per cent in trade on Tuesday to hit its fresh 52-week high of Rs 2348 in trade, after the company said that it expects its digital unit to contribute more than $500 million to revenue by 2015, as the company moves towards its goal of achieving a $5 billion top line by that time.

At 09:45 a.m.; Tech Mahindra was trading 1.6 per cent higher at Rs 2348.95. It hit a low of Rs 2300 and a 52-week high of Rs 2349.90 in trade today.

The market for digital offerings is growing for IT service players as companies look to tap social media, mobility solutions, analytics and cloud-based deployment - grouped under the acronym SMAC - to gain insights and tailor services based on customer requirements, ET reported.

Tech Mahindra's digital unit includes also technologies related to network, security and sensors that comprise the Internet of Things, an idea of connecting almost everything online.

The company, which has targeted growing revenue to $5 billion by 2015, expects 10% of that coming from the NMACS focused unit. Tech Mahindra reported revenue of just over $3 billion for fiscal year ending on March 31, 2014, said the ET report.

Larger rivals like TCS, Wipro, Infosys and Accenture are working on expanding their share of the digital market.