Mastek Q1FY17 consolidated net profit decines 39% qoq to Rs. 3.58 crore.

India Infoline News Service | Mumbai | July 15, 2016 15:30 IST

Company’s revenue stood at Rs. 130.07 crore rising 4.68% qoq and declining 2.45% yoy.

Mastek , an IT player with global operations, reported consolidated net profit of Rs.3.58 crore for the quarter ended 30th June,2016 registering a decline of 38.90% qoq and 19.19% yoy. Company’s revenue stood at Rs. 130.07 crore rising 4.68% qoq but declning 2.45% yoy.

It’s consolidated operating profit came in at Rs.7.26 crore for the current quarter jumping 462.79% qoq but falling 42.56% YoY. Operating profit margin for the current quarter at 5.58% rising 455 bps qoq but declining 389 bps yoy.

On standalone basis, the company reported at net profit of Rs. 15.14 crore for the current quarter rising 758.26% qoq and 40.19% yoy.

Mastek’s operating profit stood at Rs. 19.17 crore for the current quarter rising 563% qoq and 8.12%yoy. Operating profit margin for the current quarter came in at 35.23% declining 512bps qoq but rising 1662bps yoy.

Consolidated EPS for the quarter stood at Rs.1.56

The operating income at Rs. 130.1 crore during the current quarter compared to Rs. 124 crore in the previous quarter reflected an increase of 4.7% in rupee terms but an increase of 5.7% in constant currency terms. The fall in net profit of 38.9% was impacted by one time tax expense totaling Rs.4.11 crore in the quarter.

Management comments:

Q1FY17 results were inline with expectations with topline growing at 4.7% squentially where as the bottom line was impacted due to an one time tax expense , a good growth in 12month order backlog is evident, where as 95% of the business comes from UK thereby will see an impact on the topline; said Mr. Sudhakar Ram, MD & Group CEO,Mastek.

The cash position standing at Rs. 139.5 crore in the current quarter improved, EBITDA margins at 8.1% were helped by growth in Financial services business, we’re confident about improving our business performance in the quarters to come said Mr. Abhishek Singh, CFO Designate, Mastek.

Stock Commentary
Mastek Ltd ended at Rs. 140.15, up by Rs. 5.65 or 4.2% from its previous closing of Rs. 134.5 on the BSE.

The scrip opened at Rs. 138 and touched a high and low of Rs. 144.85 and Rs. 129.9 respectively. A total of 2110485(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 324.3 crore.

The BSE group 'B' stock of face value Rs. 5 touched a 52 week high of Rs. 225 on 19-Aug-2015 and a 52 week low of Rs. 104.7 on 17-Feb-2016. Last one week high and low of the scrip stood at Rs. 144.85 and Rs. 129.9 respectively.

The promoters holding in the company stood at 50.03 % while Institutions and Non-Institutions held 14.78 % and 35.19 % respectively.

The stock traded below its 200 DMA.

***Note: This is a NSE Chart



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