Mastek reports 8 pc jump in Q1 FY20 net profit but total income slips

Leading IT player Mastek has posted 7.8 per cent increase in consolidated net profit at Rs 24.22 crore for fiscal quarter ending June 2019 from Rs 22.46 crore in the year-ago period.

However, the net profit was down 12 per cent from Rs 27.4 crore during the January to March quarter. Revenue from operations in Q1 FY20 grew 1.4 per cent to Rs 247.54 crore as compared to Rs 244.04 crore in the April-June 2018 quarter.

The total income slipped 8 per cent at Rs 252.7 crore as compared to Rs 274 crore during the previous quarter. The operating income also fell by 7 per cent at Rs 247.5 crore as compared to Rs 267.1 crore during the previous quarter.

"Last quarter, we flagged the challenges we anticipated by Brexit uncertainty from our core UK market which generates around 75 per cent of our global revenue. In this context, Q1 was in line with our reduced expectations," said company's Chief Executive Officer John Owen.

"Unfortunately, Brexit uncertainty remains and will continue to dampen UK market conditions. We see this impact in a slowing of discretionary spend and delayed decision making," he said in a statement.

Mastek reported operating earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 32.9 crore (13.3 per cent of operating income) in Q1 FY20 as compared to Rs 35.3 crore (13.2 per cent of operating income) in Q4 FY19.

It reported total EBITDA of Rs 38 crore (15 per cent of total income) in Q1 FY20 as compared to Rs 42.2 crore (15.4 per cent of total income) in Q4 FY19.

The company added nine new clients in June and its total client count was at 154. Of its total 2,035 employees, 1,257 are based offshore in India while the rest are at various onsite locations.