Mastek posts Rs6.5-crore net profit in June-September quarter

IT solutions provider Mastek has posted a net profit of Rs 6.5 crore in its first quarter ended 30 September, as against a loss of Rs27.3 crore recorded during the same period a year ago.

Mastek, which follows a July-June financial year, said its operating revenues rose 43.6 per cent in rupee terms to Rs 223.3 crore during the quarter under review, compared with Rs 155.5 crore during the same period of previous year.

Led by strong operating performance, the company post an EBITDA of Rs 18.1 crore (8 per cent of total income) compared to an EBITDA loss of Rs 11.7 crore (-7.4 per cent of total income) in Q1FY12.

"This quarter has seen an improved operational performance on a like to like basis with the EBIDTA at 8.0 per cent. This is after the wage hike for employees upto a particular level. The balance wage hike will take effect from Oct 2012 and will impact margins to the extent of 1.8% in the coming quarter. This impact is likely to be made good with various profitability initiatives undertaken by the company,'' Farid Kazani, Group CFO and Finance Director at Mastek said.

On a quarter-on-quarter basis, Mastek posted a net profit of Rs 6.5 crore in Q1, down 70.8 per cent from that a posted during the sequential quarter ended June.

The operating revenue rose 6.1 per cent in rupee terms to Rs223.3 crore during the quarter under review, compared to Rs210.5 crore during the sequential previous quarter.

''I am pleased with the continued growth in our revenues this quarter. Our insurance business in North America is gaining market share on the back of favourable analyst reports. The business in UK is also growing on the back of existing partner relationships. The order booking was lower this quarter, with a few critical deals shifting right, but we expect to make up for it in the coming quarter. Overall, the business outlook remains positive,'' Mastek chairman and group CEO Sudhakar Ram said.

As on September 30, 2012, the company had a total of 3,277 employees, of which 73 per cent were based in India and rest outside the country. Employee count at the end of June 30, 2012, was 3,083 employees.