Mastek group Q3 net soars, US revenue dips

MUMBAI: Indian software services group Mastek said on Wednesday January-March

net profit soared to Rs 105.3 million ($2.15 million) from a mere 1.1 million a

year earlier as it operated more efficiently and its European business grew.

Compared with the preceding quarter, net profit rose 73 per cent. "Our

strong profit growth during the quarter is because of higher revenue, more

efficiency in the execution of some fixed-price projects and higher utilization

of employees," Ashank Desai, chairman and managing director, told Reuters.

The group, which includes the Bombay-listed Mastek Ltd. and its global

subsidiaries, reported revenue rose 19 per cent to Rs 715.8 million. Mastek

revised its guidance for its year ending June 2002, raising the profit growth

forecast to 250 per cent from 150 per cent but lowering revenue forecast to 7-10

per cent from 10-15 per cent.

The listed company Mastek Ltd. alone saw net profit vault to Rs 75.2 million

from 0.3 million a year ago. Ahead of the results, its shares closed up 6.37 per

cent at Rs 366.60, while the benchmark exchange index ended up 0.47 per cent.

US revenue falls



Income from Europe, which contributes 63 per cent of the group's revenue,
grew 16 per cent over the previous quarter while US revenue fell 14 per cent.

"While we continue to add Fortune 1000 clients, we have not seen a

significant increase in the size of projects, and pricing pressure

continues," Desai was quoted as saying in a statement.

But marketing efforts in the United States will continue amid hopes of an

early upturn there, he said. The group added eight new customers during the

quarter, including three Fortune 1000 companies. Mastek said its joint venture

with Deloitte Consulting, which has completed its first quarter of operations,

was working on 14 assignments, but gave no financial details.