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Mastek gains after winning contract from National Credit Guarantee Trustee Company

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Capital Market
Last Updated : Oct 28 2015 | 2:47 PM IST

Mastek rose 1.56% to Rs 156.10 at 13:10 IST on BSE after the company's announcement that it won a multi-year contract to build a credit guarantee IT platform for National Credit Guarantee Trustee Company.

The company made announcement after market hours yesterday, 27 October 2015.

Meanwhile, the BSE Sensex was down 142.48 points, or 0.52%, to 27,099.82.

On BSE, so far 66,386 shares were traded in the counter, compared with an average volume of 71,832 shares in the past one quarter.

The stock hit a high of Rs 158.70 and a low of Rs 154.90 so far during the day. The stock hit a 52-week high of Rs 513.50 on 9 March 2015. The stock hit a 52-week low of Rs 133.30 on 17 June 2015.

The stock had underperformed the market over the past one month till 27 October 2015, falling 5.76% compared with 5.37% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 16.6% as against Sensex's 1.12% fall.

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The small-cap company has an equity capital of Rs 11.43 crore. Face value per share is Rs 5.

Mastek said that contract is to build a credit guarantee IT platform for National Credit Guarantee Trustee Company (NCGTC) for enabling its Member Lending Institutions (MLIs) to accelerate their pace of collateral free lending for education loans, skill development loans, factoring, etc. The credit guarantee IT platform will enable banks, financial institutions, referred to as MLIs to participate in various credit guarantee schemes of Government of India. It is a nationwide initiative of extending collateral-free loans to various underprivileged sections of the society. NCGTC envisages a surge in applications from MLIs on commencing its operations and thus the need for a robust IT backbone, Mastek said in a statement.

Mastek as a system integrator is entrusted with an end-to-end delivery of the digital platform including training, hosting and managed support services, the company said. Mastek has formed a consortium with ESOS, a Nasik-based company, for hosting and managed services. The delivery of the IT platform is in three phases over a period of one year with maintenance support for four years. The first phase of go-live is planned within four months from signing of the contract. With this win, Mastek once again is poised to strengthen its position as a prime IT solutions player in e-Governance, the company added.

Mastek's consolidated net profit fell 39.9% to Rs 2.66 crore on 1.35% decline in net sales to Rs 130.99 crore in Q2 September 2015 over Q1 June 2015.

Mastek is a publicly held leading IT player with global operations providing enterprise solutions to government, retail and financial services organizations worldwide. With its principal offshore delivery facility based at Mumbai, India. Mastek operates in the UK and Asia Pacific regions. Incorporated in 1982. Mastek has been at the forefront of technology and has made significant investments in creating intellectual property, which along with proven methodologies and processes, increase IT value generation to its customers through onsite and offshore deliveries.

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First Published: Oct 28 2015 | 1:13 PM IST

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