Mastek lost 6.01% to Rs 143 at 14:10 IST on BSE after the company said that a major North American customer is reprioritizing its multi-vendor transformation program.
The announcement was made on Saturday, 16 November 2013.
Meanwhile, the S&P BSE Sensex was up 325.24 points or 1.59% at 20,724.66.
On BSE, 13,000 shares were traded in the counter as against average daily volume of 12,008 shares in the past one quarter.
The stock hit a high of Rs 150.25 and low of Rs 142.80 so far during the day. The stock had hit a 52-week high of Rs 178 on 17 October 2013. The stock had hit a 52-week low of Rs 103 on 2 August 2013.
The stock had underperformed the market over the past one month till 14 November 2013, declining 6.11% compared with the Sensex's 1.01% fall. The scrip had however, outperformed the market in past one quarter, jumping 30.88% as against Sensex's 5.33% rise.
The small-cap software firm has equity capital of Rs 12.33 crore. Face value per share is Rs 5.
Mastek said that while the company is yet to receive an official intimation from the client, the replanning by the customer is likely to result in the work being put on hold and as a result impact the revenue of the North American business. The company is engaged in discussions with the customer to better understand their plans and the impact of the pending changes on the company's plans - a clear picture is expected to emerge in next six to eight weeks, The company said it continues to have a strong relationship with the customer and company's solution continues to have customer's confidence. Mastek continues to see good momentum in its insurance business in North America and is expecting key wins in the next few months.
Mastek's consolidated net profit surged 112.27% to Rs 15.05 crore on 7.85% growth in net sales to Rs 233.71 crore in Q2 September 2013 over Q1 June 2013.
Mastek is a leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
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