Tata Tech Stock Climbs Over 11% After Robust March Quarter Results

While the benchmark indices could not maintain Monday’s rally and slipped into the red on Tuesday, one stock continued to surge on the bourses, defying the broader trend.

The stock of Tata Technologies surged over 11.5 percent on Tuesday on the back of reporting strong financials in March quarter results.

The stock of the Tata Group company opened at Rs 602, which was 1.2 percent higher than the previous close of Rs 591.30 apiece.

During the trading hours, the stock further surged to Rs 659.65 apiece, with a gain of 11.5 percent from the previous closing mark.

The stock had closed about 2 percent higher on Monday as well.

The strong momentum in the stock came after the company on Monday reported a jump of 8 percent in its profit for the March quarter.

Tata Technologies posted a profit of Rs 204 crore compared to Rs 189 crore during the same period in the previous financial year.

However, the rise in net profit was helped by a one-time gain of Rs 56 crore.

Its revenue from operations also rose 22 percent to Rs 1,572 crore during the March quarter. The company had reported revenue of Rs 1,286 crore during the same period last year.

The company said that the robust performance was a result of broad-based business expansion rather than a surge in a specific segment of operations.

On the back of the strong financials, the company also announced a dividend of Rs 11.70 per equity share for investors.

“The board recommended a final dividend of Rs 8.35 per equity share, and a special dividend of Rs 3.35 per equity share, subject to shareholder approval at the AGM. The dividend, if approved at the Annual General Meeting, shall be paid/dispatched within the statutory time limit of 30 days from the conclusion of the AGM,” the company said in a stock exchange filing.