Eco meltdown, delayed orders pull down Mastek's revenue, PAT

The global economic meltdown combined with some expected orders getting delayed pulled down IT major Mastek's PAT to Rs 26.4 crore for the quarter ended September 30, as compared to Rs 41.2 crore in the year-ago period, a top company official said.

"The economic downturn plus a delay in sealing some orders resulted in our revenue falling and consequently impacting our bottomline in the quarter. However, we expected this quarter to be a difficult one," Mastek's chairman and managing director, Sudhakar Ram, said here today.

The company which follows a July 1-June 30 financial year, posted a revenue of Rs 191.4 crore in the quarter, down from the Rs 261.7 crore in the year-ago period.

Ram, however, exhibited optimism about the period ahead, saying "we expect a revival from the next quarter onwards and beginning this quarter, we expect a better order-book".

The company added three clients in the reporting quarter. The company normally adds around 15 clients a year but this time given the difficult economic environment, it could be lower.

Ram, however, said that "if the market revives, then we could add the same number this year as well."

The company's key focus areas comprise the BFSI and the government segments. "We are now looking at the healthcare segment but this is still on the drawing-board stage," Ram said.

Asked his view on the Rupee, the Mastek Chief said that he expected the Indian currency to strengthen. "Our view is that the Rupee will strengthen," he said.

The company was interested in acquisitions, especially in the geographies of the US and UK and in the healthcare segment. "We hope to close one deal by June 2010," Ram said.

The company was looking at acquiring a mid-sized company and funding would be through internal accruals and debt, he said.

"The deal size is likely to be around $20-30-million," Ram added.