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| Mastek Q3 net down 4.5% on slow demand |
| BS Reporter / Mumbai Apr 09, 2009, 17:32 IST |
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A weakened pound, general slowdown in demand and delay in initiation of projects impacted Mastek’s third quarter results.
Mastek reported net profit of Rs 33.4 crore for the third quarter ended March 31, 2009, a decline of 4.5 per cent from Rs 35 crore registered in the corresponding quarter last year. Revenue for the quarter dipped 2.46 per cent at Rs 233 crore from Rs 238.9 crore in the same quarter last year.
On a sequential basis, the company’s net profit was up 7 per cent at Rs 31.3 crore for the quarter ended December 31, 2008 -- revenue was down 9 per cent at Rs 256.2 crore.
The company’s 12-month order book as on March 31, 2009 was Rs 387 crore, as compared to Rs 453 crore in the sequentially preceding quarter.
“One major programmes in the UK was supposed to start in January but did not happen due to the uncertain environment, we think it will start at the end of this quarter. This was one of the reasons for the impact on numbers. But more importantly the slowdown has impacted new project additions in a big way,” said Sudhakar Ram, chairman and managing director, Mastek.
The company added two new clients this quarter. One is an end-to-end solution deal for the company’s STG Suite for P&C (property & casualty) insurers and the other is an Indian customer.
For the Apr-Jun quarter (Q4 FY2009), Mastek estimates its consolidated total income (which is inclusive of other income) to be in the range of Rs 220 to Rs 230 crore. Net profit after tax and minority interest is likely to be in the range of Rs 30 to Rs 32 crore.
Ram also agreed that the current environment is creating pricing pressures. “We will see pricing impact come in during the April-June quarter. Customers have been asking for a price reduction in the range of 5-10 per cent,” added Ram.
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