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Mastek shrugs off weak Q1 results

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Capital Market
Last Updated : Jul 16 2015 | 4:13 PM IST

Mastek rose 3.56% to Rs 194.90 at 15:19 IST on BSE after consolidated net profit fell 31.25% to Rs 4.40 crore on 49.83% decline in total income to Rs 139.10 crore in Q1 June 2015 over Q4 March 2015.

The Q1 result was announced during market hours today, 16 July 2015.

Meanwhile, the S&P BSE Sensex was up 247.65 points or 0.88% at 28,445.94.

The stock rose on high volumes. On BSE, so far 4.03 lakh shares were traded in the counter as against average daily volume of 1.04 lakh shares in the past one quarter.

The stock hit a high of Rs 206 and low of Rs 191.90 so far during the day. The stock had hit a 52-week high of Rs 513.50 on 9 March 2015. The stock had hit a 52-week low of Rs 133.30 on 17 June 2015.

The small-cap company has equity capital of Rs 11.41 crore. Face value per share is Rs 5.

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Mastek's consolidated operating revenue fell 51.72% to Rs 133.30 crore in Q1 June 2015 over Q4 March 2015. EBITDA (earnings before interest, taxation, depreciation and amortization) rose 12.16% to Rs 16.60 crore in Q1 June 2015 over Q4 March 2015.

Mastek's 12-month order backlog was Rs 212.70 crore ($33.4 million) as on 30 June 2015 and in constant currency stood at Rs 197.50 crore ($34 million) as compared to Rs 215.10 crore ($34.4 million) as on 31 March 2015, the company said in a statement.

Commenting on the company's Q1 financial performance, Mr. Sudhakar Ram, Managing Director & Group CEO of Mastek said that the Indigo Blue acquisition is a significant addition to Mastek's Agile delivery capabilities. The LPT JV is well poised to deliver revenues, after the soft launch, in the next few quarters, Ram said. Mastek's revenue this quarter was steady, but it sees growth happening over the second half of the year as optimism returns to UK market with the new government in place with a majority, Ram said.

As on 30 June 2015, Mastek's total cash/cash equivalents stood at Rs 155.80 crore. This includes investment of Rs 18.80 crore in Majesco USA, the company said in a statement.

Mastek is one of the leading IT player with global operations providing enterprise solutions to government, retail and financial services organizations worldwide.

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First Published: Jul 16 2015 | 3:10 PM IST

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