Mastek net up 42% at Rs 18 crore

Mastek, a Rs 700-crore global IT application outsourcing company, posted a net profit of Rs 17.94 crore for the quarter-ended September 30, 2006, while the figures for last year stood at Rs 12.62 crore. Total income too increased to Rs 124.13 crore compared to Rs 87.12 crore for quarter-ended September 30, 2005.

The group (consolidated results) posted a net profit after tax (PAT) and minority interest of Rs 21.19 crore for the quarter ended September 30, 2006, compared to Rs 15.02 crore for quarter-ended September 30, 2005, a jump of 41 per cent. Total income rose to Rs 1,98.92 crore for the quarter-ended September 30, 2006, compared to last year's Rs 1,53.09 crore - a 30-per cent increase.

For the October-December 2006 (second) quarter, Mastek expects group income to be Rs 204-209 crore and PAT and minority interest to be in the range of Rs 21.5-22.5 crore. Sudhakar Ram, CEO, said "Both, the UK and US operations have registered strong growth. Although the order booking was below expectations, I do see a significant up-shift in the next quarter, based on a strong pipeline."

The quarter was marked by growth in its major geographies and a steady build-up in sales pipeline. The company continued to strengthen its relationships with existing customers by obtaining new engagements. During the quarter, revenues from European operations grew by 42 per cent over the corresponding quarter last year while revenues from US operations increased by 35 per cent over the same period. Currently, Europe contributes 65 per cent and US contributes 19 per cent to the group revenue.

In UK, Mastek won a major multi-year deal with an existing customer, a large FTSE 250 Financial Services organisation.It expects its French operations to start generating revenues from the second quarter. Both insurance and non-insurance in the UK continues to be strong with a high probability of new customer acquisitions in the coming quarters.

In US, Mastek won a large project implementation for a Credit Union Insurance company in the area of collateral protection. MajescoMastek is currently working on multiple opportunities in the insurance space. Mastek Asia Pacific (MAP) secured a reinsurance project with one of the world's Top 20 life insurance companies.

Insurance continues to be a major thrust area for Mastek and it continues to invest in its Elixir platform. Mastek's BPO operations, located at Mahape and Pune, serves as the delivery arm of Carretek LLC, Mastek's joint-venture with Carreker Corporation. DCOTG, the Mastek-Deloitte joint venture, had a slower start to the new year with a ramp down in some projects and delays in starting some newer engagements resulting in drop in revenues and profits.