 "Mastek tanks over 15% post Q2 results")
Shares of Mastek has tanked 18% to Rs 144 on the BSE after the company has reported a 39% quarter-on-quarter (QoQ) decline in its consolidated net profit at Rs 2.7 crore for the second quarter ended September 2015 (Q2). The information technology (IT) software products company had profit of Rs 4.4 crore in March 2015 (Q1) quarter.
Operating revenue dipped 1.3% at Rs 132 crore on QoQ basis. In constant currency terms operating revenue declined 3.3% on sequential basis, Mastek said in a statement.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins declined to 6.5% in Q2FY16 as compared to 11.9% in Q1FY16.
“This quarter had a revenue drop and impact on profits as two major programmes got completed and new accounts were in early stage of ramp up. However, with 11 clients and an uplift in order backlog, we except better revenue and profitability in the second half,” Sudhakar Ram, managing director & group CEO Mastek said.
At 02:50 pm, the stock was down 17.4% at Rs 145 on the BSE. A 4.25 million shares changed hands so far against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE.
Operating revenue dipped 1.3% at Rs 132 crore on QoQ basis. In constant currency terms operating revenue declined 3.3% on sequential basis, Mastek said in a statement.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins declined to 6.5% in Q2FY16 as compared to 11.9% in Q1FY16.
“This quarter had a revenue drop and impact on profits as two major programmes got completed and new accounts were in early stage of ramp up. However, with 11 clients and an uplift in order backlog, we except better revenue and profitability in the second half,” Sudhakar Ram, managing director & group CEO Mastek said.
At 02:50 pm, the stock was down 17.4% at Rs 145 on the BSE. A 4.25 million shares changed hands so far against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%