Mastek slumps after weak Q2 numbers

Mastek fell 17.26% to Rs 145.30 at 15:04 IST on BSE after consolidated net profit fell 40% to Rs 2.70 crore on 1.5% decline in total income to Rs 137 crore in Q2 September 2015 over Q1 June 2015.

The result was announced during trading hours today, 15 October 2015.

Meanwhile, the BSE Sensex was up 234.99 points, or 0.88%, to 27,014.65.

On BSE, so far 7.61 lakh shares were traded in the counter, compared with an average volume of 60,959 shares in the past one quarter.

The stock hit a high of Rs 188.10 and a low of Rs 142.10 so far during the day. The stock hit a 52-week high of Rs 225 on 19 August 2015. The stock hit a 52-week low of Rs 84.24 on 11 December 2014.

The stock had outperformed the market over the past one month till 14 October 2015, rising 6.30% compared with 3.57% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 6.35% as against Sensex's 4.13% decline.

The small-cap company has an equity capital of Rs 11.43 crore. Face value per share is Rs 5.

On a consolidated basis, Mastek's earnings before interest, taxes, depreciation and amortization (EBITDA) fell 46.6% to Rs 8.90 crore in Q2 September 2015 over Q1 June 2015. EBITDA margin was 6.5% in Q2 September 2015, lower than 11.9% in Q1 June 2015.

The operating revenue was Rs 131.60 crore in Q2 September 2015 compared with Rs 133.30 crore in Q1 June 2015, reflecting a decrease of 1.3% in rupee terms and a drop of 3.3% in constant currency terms.

Mastek's 12-month order backlog was Rs 224.20 crore as on 30 September 2015 and in constant currency stood at Rs 217.79 crore as compared to Rs 212.70 crore at the end of Q1 June 2015, reflecting an increase of 5.4% quarter-on-quarter (QoQ) in rupee terms (an increase of 2.4% QoQ in constant currency).

The company added 11 new clients during Q2 September 2015. Total client count as of 30 September 2015 was 76 (LTM).

The total cash & cash equivalent stands at Rs 130 crore as on 30 September 2015 as compared to Rs 137 crore at the end of 30 June 2015.

Mastek is a publicly held leading IT player with global operations providing enterprise solutions to government, retail and financial services organizations worldwide. With its principal offshore delivery facility based at Mumbai, India. Mastek operates in the UK and Asia Pacific regions. Incorporated in 1982. Mastek has been at the forefront of technology and has made significant investments in creating intellectual property, which along with proven methodologies and processes, increase IT value generation to its customers through onsite and offshore deliveries.

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