Mastek tanks 15% on muted September quarter results

In Q2, the company's net profit remained flat at Rs 81.5 crore as against Rs 80.2 crore in June quarter of FY22

Shares of Mastek tanked 15 per cent to Rs 2,903 on the BSE in Wednesday's intra-day trade after the company reported muted set of July-September quarter (Q2FY22) numbers. With today's decline, the stock has corrected 21 per cent from its 52-week high level of Rs 3,666, touched in Tuesday's intra-day trade.

In Q2FY22, the company's dollar revenue increased 2.6 per cent quarter on quarter (QoQ) to $72 million (up 3.9 per cent in constant currency (CC)) while rupee revenue increased 3.4 per cent QoQ at Rs 533 crore. Net profit during the quarter also remained flat at Rs 81.5 crore as against Rs 80.2 crore in June quarter of the same fiscal.

Earnings before interest, tax, depreciation and amortization (Ebitda) margins also declined 80 bps QoQ to 21.1 per cent due to 6.5 per cent QoQ increase employee expenses. Deal win declined 1.8 per cent QoQ to $ 155.5 million.

The management, however,  said despite increase in costs due to salary hikes and investments in sales & marketing, it has been able to maintain healthy operating Ebitda margin at 21.1 per cent. "We are confident that with refreshed focus towards new age practices and strategic investments, we are well placed to sustain the growth momentum. As an organization, we have made progress on our Vision 2025, strategic priorities and big bets that will drive accelerated growth in digital & cloud services over the next 3 years," it said.

Despite the past two days' decline, the stock has zoomed 123 per cent in the past six months, as compared to a 29-per cent rise in the S&P BSE Sensex. At 09:43 am, the stock was down 11 per cent at Rs 3,051 on the BSE, as against a 0.05-per cent decline in the benchmark index.