Mastek net profit up 16%

IT services and solutions company Mastek today said its net profit rose by 16 per cent to Rs 31.1 crore for the quarter ended December 31, 2008, compared to Rs 27.1 crore in the same quarter a year ago.

The company's revenue grew by 19 per cent at Rs 256.2 crore for the period under review, compared with Rs 215.9 crore in the same period a year-ago.

The company also recommended an interim dividend of Rs 2.50 per share.

The financial performance of the company during the October-December reflects translation impact due to the significant weakening of the British pound relative to the dollar and the rupee, resulting in forex losses amounting to Rs 11.7 crore.

"Although the quarter was better, but not as good as we expected. The negative movement of pound sterling had an impact on us. The positive movement of dollar was not enough to offset the move of pound sterling," Mastek CFO and Director of Finance Rangachari Desikan said.

The company had targeted a revenue of Rs 265-270 crore and a net profit of Rs 43-44 crore with the exchange rate prevailing at the beginning of the quarter, he said.

Mastek provides new technology and IP-led enterprise solutions with a focus on the insurance and government verticals worldwide.