In North America -- which accounts for over 50% of Mastek's revenues --, the firm works with more than 100 insurance carriers offering insurance platforms and services.
For the quarter ended September 30, 2013, Masteks North American revenues rose 4.5% to Rs 112.05 crore from Rs 107.27 crore in the year-ago period. Total revenues for the quarter stood at Rs 236.7 crore.
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In a BSE filing, Mastek said: "A major North American customer is reprioritising its multi-vendor transformation program. While the company is yet to receive an official intimation from the client, the replanning by the customer is likely to result in the work being put on hold and as a result impact the revenue of the North American business."
Reacting to the news, which was announced by the firm last week on Saturday, Mastek's shares today fell by 7.62% to close at Rs 140.55 apiece on BSE.
The company is engaged in discussions with the customer to better understand their plans and the impact of the pending changes on the Mastek's plans, it added.
"A clear picture is expected to emerge in next six to eight weeks. The company continues to have a strong relationship with the customer and company's solution continues to have customer's confidence," the filing said.
Mastek continues to see good momentum in its insurance business in North America and is expecting key wins in the next few months, it added.
For the second quarter of this fiscal, Mastek's net profits rose over two-fold to Rs 15.05 crore from Rs 6.49 crore in July-September of 2012-13 fiscal. Revenues were up by 5% to Rs 236.7 crore from Rs 225.8 crore during the quarter under review.
It added 4 new clients during Q2 FY 2014 taking the total client count to 121. Mastek's 12-month order backlog was Rs 558 crore ($89.1 million) as on September 30, 2013.
As on September 2013, the company had a total of 3,185 employees, of which 2,423 employees were based off-shore in India, while the rest were at various onsite locations outside India. Employee count at the end of June 30, 2013 was 3,271.
Its cash and cash equivalent stood at Rs 250.7 crore as on September 30, 2013. PTI RNK