Mid-cap IT products and services firm Mastek, reported net profit of Rs 7.6 crore for the second quarter ended December 31, 2012, from a net loss of Rs 1.52 crore in the corresponding quarter.
Mastek, which focused on insurance and government vertical, saw its revenue grow 30.8% at Rs 229.8 crore from Rs 175.6 crore reported in the same quarer last year.
On a sequential basis the company’s net profit was up 16.3%--and revenue were marginally up 1.1%.
The company added three new clients during Q2FY13. The total number of clients on a trailing 12 month basis was 114.
“We have had a steady quarter. What gives me pleasure is the strong order backlog of Rs.538 crore, which is a historical high. The North America Insurance business is showing robust growth with significant deals signed up in Q2 ended December 2012 and the same is expected to drive growth for the year ahead,” said Sudhakar Ram, Chairman and Group CEO, Mastek.
Mastek’s 12-month order backlog was Rs 538 crore ($98 mn) as on 31st December 2012, compared to Rs 421 crore ($80 mn) at the end of the previous quarter, reflecting an increase of 28% in rupee terms (22% in dollar terms).
The Q2 new deal wins included a notable deal in the Insurance segment in North America, Gerber Life Insurance Company which has selected MajescoMastek’s Elixir North America for modernization of its policy administration patform as well as deliver other services involved in the two year transformation initiative. This deal will cover all US lines of business of Gerber.
Farid Kazani, Group CFO and Finance Director, Mastek, said: "The Company continues to drive operational efficiencies and various cost saving initiatives which has resulted in 140 bps improvement in EBITDA margin to 9.4% more than offsetting the salary impact in this quarter.”