Mastek fell 3.79% to Rs 191.55 at 15:15 IST on BSE after consolidated net profit fell 38.3% to Rs 11.30 crore on 5.1% decline in total income to Rs 230 crore in Q4 March 2014 over Q3 December 2013.
The company announced the results during trading hours today, 23 April 2014.
Meanwhile, the BSE Sensex was up 118.17 points, or 0.52%, to 22,876.54.
On BSE, so far 1.58 lakh shares were traded in the counter, compared with an average volume of 72,863 shares in the past one quarter.
The stock hit a high of Rs 201.10 and a low of Rs 188.10 so far during the day. The stock hit a 52-week high of Rs 227.90 on 5 March 2014. The stock hit a 52-week low of Rs 103 on 2 August 2013.
The stock had underperformed the market over the past one month till 22 April 2014, sliding 6.61% compared with the Sensex's 4.61% rise. The scrip had, however, underperformed the market in past one quarter, rising 11.23% as against Sensex's 6.66% rise.
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The small-cap company has an equity capital of Rs 12.32 crore. Face value per share is Rs 5.
On a consolidated basis, the company reported EBITDA of Rs 18.10 crore (7.8% of total income) in Q4 March 2014, compared with Rs 35.80 crore (14.8% of total income) in Q3 December 2013.
The operating revenue was Rs 223.90 crore in Q4 March 2014 as compared to Rs 240.20 crore in Q3 December 2013 reflecting a decrease of 6.8% in rupee terms and 8% in constant currency terms. The drop in revenue was primarily due to reprioritization of a North America client as announced earlier.
The product research & development spends was higher at Rs 16.90 crore in Q4 March 2014 as compared to Rs 15.60 crore in Q3 December 2013.
On a consolidated basis, Mastek's net profit stood at Rs 51.80 crore in the year ended March 2014 as against a net profit of Rs 34.30 crore in the year ended March 2013. Total income was Rs 934.3 crore in the year ended March 2014 as compared to Rs 692.50 crore in the year ended March 2013. The year ended figures are not comparable as figures in the year ended 31 March 2013 represents 9 months period.
Mastek's 12-month order backlog was Rs 541.80 crore as on 31 March 2014 and in constant currency stood at Rs 556.10 crore as compared to Rs 513.10 crore at the end of Q3 December 2013, reflecting an increase of 5.6% quarter-over-quarter in rupee terms (increase of 8.4% quarter-over-quarter in constant currency).
Commenting on the results, Mr. Sudhakar Ram, Group CEO & Managing Director, Mastek, said: "The overall performance for the year has been quite encouraging from the financial and strategic perspective. There have been good wins both in the Government vertical in UK region and P&C Insurance segment in North America. The year has ended with a healthy backlog and the focus is to build aggressive growth in both these regions."
Mr. FaridKazani, Group CFO and Finance Director, Mastek, said: "The company successfully completed the share buyback in record time giving good returns to exiting shareholders. On the business front, the lower EBITDA was due to the anticipated shortfall in revenue and decision to maintain resources for meeting future growth in revenue. While this is a short term impact on profitability the focus will be to deliver double digit EBITDA levels in the next year."
The company said it added 3 new clients during Q4 March 2014. Total client count as of 31 March 2014 was 126 (LTM).
As on 31 March 2014, the company had a total of 3,123 employees, of which 2,315 employees were based offshore in India while the rest were at various onsite locations outside India. Employee count at the end of 31st December 2013 was 3,128.
The total cash/cash equivalent stood at Rs 171.10 crore as on 31 March 2014 as compared to Rs 249.40 crore at the end of 31 December 2013 after utilizing an amount of Rs 54.20 crore towards buyback of equity shares.
Mastek is a publicly held leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek operates across North America, Europe, 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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