Mastek tumbled 10.76% to Rs 124.40 at 14:20 IST on BSE after consolidated net profit declined 65.02% to Rs 7.10 crore on 3.13% decline in operating revenue to Rs 222.30 crore in Q1 June 2013 over Q4 March 2013.
The Q1 result was announced during trading hours today, 19 July 2013.
Meanwhile, the S&P BSE Sensex was up 102.20 points or 0.51% at 20,230.61.
On BSE, 86,000 shares were traded in the counter as against average daily volume of 21,000 shares in the past two weeks.
The stock hit a high of Rs 142 and low of Rs 120 so far during the day.
Mastek's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) declined 30.07% to Rs 18.60 crore in Q1 June 2013 over Q4 March 2013. The decline in EBITDA margin was due to drop in UK revenue, higher product development expenditure and mandated provision for receivables greater than 180 days, Mastek said.
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Mastek said that the drop in revenue in Q1 June 2013 was primarily in the UK with the successful completion of one project and the anticipated ramp down in another project totaling to Rs 12 crore. The profit after tax (PAT) of Rs 7.10 crore in Q1 June 2013 includes additional tax provision during the quarter for tax on dividend received from a foreign subsidiary and deferred tax charge as compared to negative tax in the previous quarter, the company said.
Mastek's 12-month order backlog was Rs 560 crore as on 30 June 2013.
The company's cash & cash equivalent increased to Rs 281 crore as on 30 June 2013, from Rs 159 crore as on 31 March 2013. The cash balance includes advance monies received from customers of about Rs 79 crore, Mastek said.
Mastek added 4 new clients during the quarter. Total client count as on 30 June 2013 was 117.
Commenting on the company's results, Mr. Sudhakar Ram, Group CEO & MD, Mastek said, "While the quarter was muted due to the anticipated drop in the revenues in UK, the momentum for the company for the full year remains strong. We have seen a substantial improvement in our order backlog position and this gives us the confidence that the revenue will follow through in the rest of the quarters".
Mr. Farid Kazani, Group CFO and Finance Director, Mastek said, "The highlight of the quarter was the strong improvement in cash position to Rs 281 crore. The EBITDA margins remain healthy although the quarter has been impacted by higher product development expenditure and provisioning for overdue receivables. We remain confident that margins going forward will improve on the back of improvement in sales traction and operational efficiency measures".
Mastek is a leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
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