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Mastek Q2 PAT surges 31 per cent

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CIOL Bureau
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MUMBAI, INDIA: Mastek Limited drove on both existing and new customers to report an increase of 31 per cent in its Profit after tax (PAT) in the second quarter ended December 31, 2007.

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The high end IT solutions player providing IP-led solutions in the government, financial services and insurance across the world, posted a PAT of Rs 27.1 crore in Q2 indicating a net profit margin of 12.5 per cent.

The company posted a total income of Rs 215.9 crore, a 17 per cent surge over the corresponding quarter last year (Rs 184.7 crore).

Also, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for the just concluded quarter stood at Rs. 40.9 crore, translating into an EBITDA margin of 17.3 per cent when compared to 14.5 per cent in the serially foregoing quarter.

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In dollar terms, the company’s total income increased 33 per cent from $40.6 million last year to $54.1 million in the quarter under review. PAT was higher by 51 per cent at $6.8 million compared to $4.5 million last year.

Sudhakar Ram, chairman and managing director, Mastek pointed out that the company has brought in four fresh accounts to its kitty out of which three are from the insurance domain.

Ram, while speaking on the results said, “We remain focused on the IP-led enterprise applications market and continue to implement our growth plans that include overseas acquisitions and expanding the order book, which has been growing.”

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“The second-half of our financial year 2008 is expected to be better than the first half, both in terms of customer addition and order book expansion, and we expect to deliver a 35 per cent growth in dollar terms in FY2008.”

For the January-March 2008 quarter, Mastek expects its consolidated total income (which is inclusive of other income) to be in the range of Rs 220 to Rs 225 crore. Net profit after tax and minority interest is likely to be in the range of Rs 29 to Rs 30 crore.

For the full year FY2008, the company is expected to deliver a 35 per cent growth (in dollar terms) over FY2007 (after excluding contributions from the Deloitte JV).

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“The acquisition of Vector Insurance Services LLC, a US (United States) based entity for $10 million in July 2007 is beginning to pay rich dividends” stated an IT analyst from ICICI Securities.

He also pointed out that this has given Mastek a stronger presence in the US markets. Interestingly, during the quarter under review, revenues coming from the UK (United Kingdom) markets have amounted to 66 per cent of overall amount for the quarter (Rs 138.7 crores) and the US markets are looking positive for the coming quarter.

© CyberMedia News

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