Mastek Q3 net profit surges 65%

A sustained growth in existing accounts and contribution from new deals in the last quarter have helped Mumbai-based IT solutions firm Mastek announce results bettering market expectations.

The company's consolidated net profit was up 65 per cent at Rs 35.08 crore for the third quarter ended March 31, 2008, from Rs 21.22 crore (excluding contributions from the Deloitte joint venture) registered in the corresponding quarter last year.

Its revenues for the quarter under review at Rs 238.9 crore was up 22 per cent from Rs 195.3 crore (excluding the Deloitte JV) for the quarter ended March 31, 2007.

If the Deloitte JV numbers are taken into account, the company's net profit will be down by 13 per cent from Rs 40.23 crore and revenues will be up 11 per cent from Rs 214.79 crore.

On a sequential basis (quarter-on-quarter), the company's net profit was up 29.4 per cent from Rs 27.10 crore and revenues were up 10.6 per cent from Rs 212.97 crore.

Sudhakar Ram, chairman and managing director, Mastek, said, "Other than the STG acquisition, we also had two major deals that added to the quarter numbers. Going ahead for the full year in dollar terms, we are expecting a growth of 38-39 per cent. For the April-June quarter, we are expecting top line of Rs 240-250 crore and profits in the range of Rs 37-38 crore."

The acquisition of the US-based System Task Group (STG) contributed close to Rs 16 core to the top line, due to which the company surpassed its own guidance of Rs 220-225 crore. Its net profit on a sequential basis also crossed the guidance of Rs 29-30 crore.

The company will begin its buyback plan in the next two weeks. Mastek had announced earlier that it would buy back Rs 65 crore worth of shares at a price not exceeding Rs 750 a share through the open market.

EBITDA for the quarter under review increased 47 per cent to Rs 50.6 crore.