Mastek Q4 consolidated net at Rs 20.59cr

Mastek today reported a consolidated net profit of Rs 20.59 crore for the fourth quarter ended June 30, 2006 as against Rs 14.73 crore in Q4FY05.

According to a release issued by the company today, total income increased to Rs 193.41 crore from Rs 155.88 crore in Q4FY05.

The group posted a net profit after tax and minority interest of Rs 69.09 crore for the year ended June 30, 2006 as against Rs 53.45 crore in FY05. Total income increased to Rs 701.11 crore from Rs 576.65 crore in FY05.

"The figures for the year ended June 30, 2006 are not comparable with the corresponding previous year's figures since with effect from January 01, 2005, the company has changed its business model for the UK operations. The company started executing on-site projects in the UK, which were earlier executed through its subsidiary. The revenue earned and cost incurred by the company for executing such projects is included in the results of the current year as against the numbers for only two quarters corresponding previous year," the release added.

The board has recommended a final dividend of Rs 3.50 per share (70% on par value of Rs 5 per share after 1:1 bonus). "Including the interim dividend of Rs 3 per share (60% on par value of Rs 5 per share), the total dividend recommended for the year is Rs 6.50 per share (120% on par value of Rs 5 per share), the release added.

Sudhakar Ram, chief executive officer of Mastek, said: "In the last year, we made significant progress on three fronts in establishing our position as a leading solutions provider for the insurance industry in delivering sustained value to all our strategic clients and growing these accounts significantly; and in building up a good pipeline in the two major verticals that we are focused on - insurance and e-government. Despite shortfalls overall in new account acquisition and growth rate, it is encouraging to note that we added three top twenty strategic accounts in insurance, and our insurance business grew at 43% annually."