Mastek is a publicly held leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide. With its principal offshore delivery facility based at Mumbai, India, Mastek operates across North America, Europe, and Asia Pacific regions. Incorporated in 1982, Mastek has been at the forefront of technology and has made significant investments in creating intellectual property, which along with proven methodologies and processes, increase IT value generation to its customers through onsite and offshore deliveries.
Yash Ved of IIFL provides you the highlights of a conference call, where Sudhakar Ram says "The second half is expected to be better as the business momentum remains intact in the UK and North America. "
Brief us about your Financials?
For the second quarter ended 30th September, 2014, the operating revenue was Rs 246.9 crore during the quarter under review as compared to Rs 220.9 crore during the previous quarter reflecting an increase of 11.8 % in rupee terms and an increase of 10.7% in constant currency terms.
Total income was Rs 251.7 crore during the quarter under review as compared to Rs 227.6 crore during the previous quarter, up 10.6% on Q-o-Q basis.
The Company reported an EBITDA of Rs 16.1 crore (6.4% of total income) as compared to Rs 9.3 crore (4.1% of total income) in Q1FY15.
Net profit stood at Rs 1.8 crore in Q2FY15 as against Rs 0.9 crore in Q1FY15.
How was the quarter as a whole?
There has been an all round improvement in business performance during the second quarter. Although the first half was affected by the first quarter performance, the second half is expected to be better as the business momentum remains intact in the UK and North America.
What is your outlook for the coming quarters?
With the announcement of the demerger of the Insurance business into the Majesco group, the company is working to build an aggressive growth strategy to capitalise on the opportunities in the Insurance and Solutions segment.
How many clients added during the quarter?
The Company added 4 new clients during Q2FY15.
What is the current order backlog?
The 12-month order backlog was Rs 518.4 crore ($ 84.0 mn) as on 30th September, 2014 and in constant currency stood at Rs 519.6 crore ($ 86.4 mn).
We expect large orders in pipeline and also expect we are on track in terms of large deals.
What is your current employee strength?
As on 30th September, 2014, the company had a total of 3425 employees, of which 2587 employees were based offshore in India while the rest were at various onsite locations outside India.
What is your total cash and cash cash equivalent?
The total cash/cash equivalent stands at Rs 173.5 crore as on 30th September.
What is your revenue mix?
About 52.4% of our revenues comes from UK, 38.1% from North America and remaining 9.5% from others.