Mumbai: Mastek is setting up a dedicated offshore development centre in India for ePolicy Solutions, a US based company that develops and licenses software products for the insurance industry.
Also the company has entered into strategic vendor relationships with a European telecom major and a large Fortune 500, US-headquartered computer hardware manufacturer.
During the quarter the proportion of onsite business has remained stable indicating that the company has got new client relationships. During the period there five new clients were billed, while 10 accounts expired, reducing the total number of active clients to 64.
Syntegra, a part of the BT Group and one of Britain's consulting and SI companies, has chosen Mastek as an offshore software development partner. The partnership will include customer relationship development, joint presales activities and development.
Though Mastek's first quarter results were in line with its guidance, revenues thereafter were flat and were driven mostly by the joint venture (JV) with Deloitte. The net profit of Rs 30 million too was contributed by the JV and was expectedly sharply down against Rs 152 million a year ago.
While the broad numbers came in line, Mastek's operating metrices again deteriorated sharply to the extent that excluding the JV's contribution, the standalone consolidated entity has reported quarterly losses, according to Taib Securities India.
Excluding the JV revenues the US revenues have grown by just 3 per cent to Rs 216 million while the UK continues to sequentially de-grow for being unable to get the replacement business to the completed LCC project, it said. "Mastek's operating margins have taken a severe hit and will taken another two-three quarters to partially revive."
After the LCC project, Mastek has failed to get any material order through its alliance with Capita. While Capita itself is doing well in the UK, the management attributed the loss of business to delays in closing the deals within the quarter and expect the same to come in during the December 2003 quarter.
Business process outsourcing (BPO) revenues were flat as clients are still in the initial phase of pilots and the JV with Carreker Corporation of the US is in the early phase of joint bidding and negotiations with prospective clients for banking related BPO services.